Fitch Solutions’ BMI report indicates that while energy storage projects in the Middle East, such as those in the UAE and Saudi Arabia, are preparing large-scale initiatives, they still pale in comparison to the over $17 billion worth of projects in the United States.
For instance, Saudi Arabia’s NEOM mega-project includes an energy storage plan named ENOWA, with a capacity of 2,200 megawatts, according to data from the Middle East-focused business intelligence firm Meed.
Additionally, the UAE’s Emirates Water and Electricity Company (EWEC) is advancing energy storage projects with a combined capacity of up to 400 megawatts.
Amidst the global context of carbon neutrality, the Middle East’s focus on developing renewable energy and energy storage technologies aligns with global development trends.
The global energy storage market is also entering a rapid growth phase. From 2019 to 2023, the global energy storage capacity is expected to grow at a compound annual growth rate of 108%. BMI forecasts accelerated growth in the energy storage industry over the next decade due to increasing demand for grid stability and declining storage costs.
Asia-Pacific, led by China and Australia, is experiencing the fastest growth in the region, with Germany leading in Europe. In the Americas, the United States, Canada, and Chile are at the forefront.
In terms of project value, Canada ranks third globally in energy storage projects, with China and the United Kingdom rapidly developing projects supported by government initiatives. South Africa and Singapore rank sixth and seventh respectively, followed by Germany and France after the UAE.
Sithobile Khoza, BMI’s analyst for power and renewable energy, highlighted prominent French companies such as Neoen, EDF Renewables, and Engie, which are leading in the development of energy storage projects.
The demand for development in the global energy storage market remains robust. Earlier this week, Recurrent Energy, specializing in utility-scale solar and storage projects, secured a multi-currency revolving credit facility worth $1.41 billion. This funding will support the development and construction of solar and battery storage projects across multiple European countries including Spain, Italy, the UK, the Netherlands, France, and Germany.
