Energy Transition

Battery installations to grow tenfold by 2030 – plus other top energy stories this week

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A distribution battery energy storage system in Irvine, California.

Battery installations could increase by 33% per year, find new research. Image: Reuters/Lucy Nicholson

Roberto Bocca
Head, Centre for Energy and Materials; Member of the Executive Committee, World Economic Forum
This article is part of: Centre for Energy and Materials

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  • This week's round-up brings you the latest developments in the global energy sector.
  • Top energy news: Battery installations to grow tenfold by 2030; Peak oil demand ‘in sight’, says IEA; India will soon overtake China as largest driver of oil demand.
  • For more on the World Economic Forum's work in the energy space, visit the Centre for Energy and Materials.

1. Battery installations to grow tenfold by 2030

A tenfold rise in annual battery energy storage system (BESS) installations is expected between 2022 and 2030, according to research firm Rystad Energy. The trend is being aided by falling costs, supportive legislation and rising capacity in China, writes Energy Storage News.

A BESS can be used to optimize energy usage. Rystad sees annual BESS installations rising by an average of 33% per year through to 2030, mainly as a result of increased residential and commercial demand. But growth this year will surpass even that, potentially hitting 72% thanks to policy measures such as the US Inflation Reduction Act and the EU's Green Deal.

Regionally, North America is leading the installations, and will do so for a few more years, after which Asia is projected to overtake.

BESS installations are also used in grid-scale systems to balance energy price peaks and troughs by trading in the electricity market. They can also offer balancing services to grid operators and provide extra capacity.

2. Peak oil demand ‘in sight’: IEA

Growth in global oil demand is set to slow significantly by 2028, as peak oil demand draws closer, the International Energy Agency (IEA) says.

It projects that annual growth in demand will fall to 400,000 barrels per day in 2028, from 2.4 million barrels per day this year. Overall global oil demand will rise by 6% between 2022 and 2028 to reach nearly 106 million barrels per day, mainly thanks to the aviation and petrochemical sectors, the IEA’s Oil 2023 report adds.

Graphic showing annual oil demand growth falling from 2022-2028
Annual oil demand growth is projected to start declining from 2026. Image: IEA

Demand for oil from combustible fossil fuels should start declining from 2026, as electric vehicles (EVs) and biofuels work alongside improving fuel economies to cut demand, the report says.

“The shift to a clean energy economy is picking up pace, with a peak in global oil demand in sight before the end of this decade as electric vehicles, energy efficiency and other technologies advance,” says IEA Executive Director Fatih Birol. “Oil producers need to pay careful attention to the gathering pace of change and calibrate their investment decisions to ensure an orderly transition.”


3. News in brief: More energy stories from around the world

Renewable energy is on the rise, but progress has been slow for the heat and fuel sectors, which make up over 75% of overall global energy use, according to think tank REN21’s Renewables Global Status Report. Renewables made up 30% of total electricity supply last year, the report shows.

Europe’s ambitious target to produce 10 million tonnes of renewable-based hydrogen by 2030 while importing another 10 million tonnes will in part be reliant on Africa’s renewable energy resources, says the Financial Times. A joint EU/Africa report shows Africa has “extraordinary green hydrogen potential”. Green hydrogen could play a pivotal role in reducing fossil fuel usage in hard-to-abate sectors.

India will soon overtake China as the largest oil demand driver, IEA chief Fatih Birol says. The agency’s latest outlook report shows about 75% of the 2022-28 demand growth increase will be from Asia, with India surpassing China as the main source of growth by 2027. Birol also pointed to India’s renewable energy capacity potential, and the opportunity for the nation to become a green hydrogen superpower.

Namibia has severely cut its critical mineral exports. The country is a leading producer of lithium, dysprosium and terbium, which are needed for magnets in wind turbines and EV batteries. Namibia has attracted increasing foreign interest as the world seeks to embrace renewable energy technologies.

Saudi Arabia has signed a $5.6 billion deal with Chinese electric car manufacturer Human Horizons to set up a vehicle research, development, manufacturing and sales joint venture, according to Gulf Business. This is in line with Saudi Arabia’s plans to develop a domestic EV industry.


Greener rail freight has moved one step closer in Poland, after domestic firm PESA received regulatory approval to operate a hydrogen locomotive. It is equipped with a zero-emission hydrogen drive, and the approval is the first of its kind in the country.

US-made wind and solar parts are cheaper than imports for the first time. The country's Inflation Reduction Act and numerous tax credits have led to domestic solar components costing around 30% less than imports.

Investment firm BlackRock has launched the Brown to Green Materials Fund aimed at investing in undervalued carbon-intensive companies that produce materials driving the energy transition. The fund targets industries such as metals, mining, cement, and construction, which account for more than 17% of global greenhouse gas emissions.

More solar production in the US and China coupled with cheaper raw material costs mean Australia is set for cheaper solar power, according to a report cited by UK newspaper The Guardian.

Ukraine is responding to Russia's attacks on its power grid by increasing the use of wind turbines, a more secure energy source that is easier to repair than power plants, writes The New York Times. Turbine producer DTEK is building what is planned to be eastern Europe's biggest wind farm in the southern Mykolaiv region.

4. More on energy from Agenda

How can the world continue to grow and develop economically while reducing emissions? The key is reducing energy intensity: so what is energy intensity and why is it vital to our net-zero goals?

Hydrogen is seen by many as the missing link for decarbonization, but it is challenging to handle and most of it is produced using fossil fuels. We need to start treating carbon capture and storage the same way as hydrogen. Here's why.

A fuller picture of green transition economics and its impact on Africa is needed. Here's what the UN, the African Union and other multilateral bodies are doing to position Africa as a green minerals hub.

To learn more about the work of the Centre for Energy and Materials, contact Ella Yutong Lin:

1. Battery installations to grow tenfold by 20302. Peak oil demand ‘in sight’: IEA3. News in brief: More energy stories from around the world4. More on energy from Agenda

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