WoodMac: World needs 1.4 TW of grid-forming batteries by 2034

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From ESS News

Analyst Wood Mackenzie has highlighted what it estimates will be a 1.4 TW global “capacity gap” in the deployment of utility-scale batteries with grid-forming technology.

Predicting the world will require $1.2 trillion of BESS investment through 2034, to back the more-than-5.9 TW of new solar and wind generation capacity expected to come online during that time, WoodMac says the use of advanced BESS with grid-forming technology will be crucial.

Grid-forming BESS are able to provide grid-strengthening services such as black start capability – enabling network restart after a blackout; grid frequency and voltage stabilization; and the inertia necessary to secure time for alternative electricity sources to come online when individual generators fall short.

“Grid-forming battery energy storage systems represent a critical breakthrough for renewable energy integration,” said WoodMac research director Robert Liew in a note today. “As global power demand is projected to surge 55% by 2034, with variable [-generation] renewable energy comprising over 80% of new capacity additions, GFM BESS provide the technological bridge between renewable [energy] abundance and grid stability requirements.”

While grid-forming BESS cost around 15% more than conventional grid-scale sites – thanks to the need for upgraded inverters, controls, and software – WoodMac said falling technology costs have seen average battery energy storage prices fall 10% to 40% worldwide over the last year.

Please read the full story on our ESS News website…

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