IHS Markit

A review of recent solar and storage related trends as seen by IHS Markit.

Unprecedented volatility in global commodity markets, disruption to logistics and supply chains, and unrelenting growth has driven up the cost of Li-ion batteries since the middle of 2021. Sam Wilkinson and Oliver Forsyth of IHS Markit expect to see rapid manufacturing expansion that will still struggle to keep up with demand, and ultimately lead to the establishment of a smaller group of battery-makers specialized in supplying stationary energy storage systems.

The London-based analyst has published a series of clean tech predictions for the year which also highlighted the rising proportion of sub-5MW solar projects in the global market, and cheaper clean energy financing costs even as panel prices continue to rise.

Renewable energy and battery storage has racked up another banner year in 2021, according to end-of-year analysis from Rystad Energy. While there was growth across segments, residential solar has seen the most impressive gains, surpassing the commercial and industrial (C&I) segment for the year.

PV markets in Southeast Asia have picked up over the past two years, driven by the astounding growth of Vietnam. Regional policies, combined with growing demand for renewable power in the manufacturing industry, will result in 27 GW of new PV installations across the region over the next five years, writes IHS Markit analyst Dharmendra Kumar. PV installations in these countries are driven by attractive feed-in tariffs, net energy metering, tariff-based auction mechanisms, and other incentives.

In the first installment of a new monthly blog by IHS Markit, Edurne Zoco, executive director for clean energy technology, writes that high prices and increased freight costs are putting solar PV procurement teams under extreme pressure, particularly those teams with connection deadlines this year that were anticipating a more favorable pricing and logistic environment in the second half of 2021.

In its latest report, IHS Markit predicts that energy storage installations in Australia will grow from 500 MW to more than 12.8 GW by 2030. Today, Australia makes up less than 3% of total global installations for battery energy storage and is the seventh largest market globally. By 2030, it is forecast to comprise 7% of global installations and become the third largest market. This growth will be largely driven by three distinct market segments: residential, standalone front-of-the-meter, and collocated with utility-scale renewables.

This year will be a key period in the development of China’s solar PV market. It is the first year of the 14th five-year plan, the first calendar year after President Xi Jinping announced the 2030-60 carbon emissions commitment, and the first year for utility and commercial unsubsidised projects. IHS Markit expects the solar industry in China to reach another milestone with more than 60 GW of installations this year, advancing the ground for the energy transition and the displacement of traditional energy sources to fullfill the goal of a net carbon future over the next four decades to come.

IHS Markit has released its latest Global Renewables Markets Attractiveness Rankings, based on measures related to investment confidence and ease of development, with Australia ranking in the top ten.

Annual battery storage installations will exceed 10 GW/28 GWh in 2021, following a particularly strong year in 2020, despite the challenges created by the global pandemic, writes IHS Markit analyst Mike Longson. Combined solar and storage will be a core focus for new deployment in 2021, as the front-of-the-meter and behind-the-meter energy storage markets are both expected to grow significantly in the months ahead.