Our View On The Market

Market analyses and studies consistently highlight the ongoing positive developments in the field of renewable energies. The expansion of wind and solar energy is progressing globally, and the necessary storage infrastructure is also growing rapidly. Between 2013 and 2023, the global installed battery storage capacity increased from approximately 1 GW to over 85 GW. Notably, over 40 GW was added in 2023 alone, more than double the amount added the previous year—a trend that continues to rise. This sharp increase in recent years has been driven almost exclusively by China, the European Union, and the United States, which together accounted for nearly 90% of the capacity added in 2023. More than half of these are large-scale storage systems connected directly to transmission or distribution networks, with capacities ranging from several hundred kWh to several GWh.

Although the market development sounds encouraging, the scope so far is still not enough to initiate a real trend reversal against global warming. Global CO₂ emissions continue to rise, and a turning point is not yet in sight. The expansion of renewable energies must therefore be significantly strengthened, which at the same time means an increasing need for storage solutions. It is crucial to address potential problem areas, such as unsafe supply chains or conflict minerals, in all solution approaches. Our Iron Salt Battery offers a clear advantage in this context. It is not affected by any geopolitical and economic restrictions and is particularly suitable for international applications and market environments.

In Europe, the United Kingdom, Spain, Germany and Italy are well-developed renewable energy markets. They represent 46% of the EU’s total electricity generation plus the UK. By 2024, only these countries have developed a plan for Long Duration Energy Storage, which provides 57 GW of installed capacity by 2040. Looking ahead, we expect the entire European market to double in size and reach an installed capacity of 110 GW – 120 GW by 2040.

Another aspect of the market addressed by the Iron Salt Battery is the cost and thus the profitability of renewable energies compared to conventional forms of energy generation. The energy transition can only be successful if it is possible to store renewable energies not only in an environmentally friendly manner, but also at low costs. This enables wind and solar energy to become both baseload-capable and economical—a crucial factor for marketability and acceptance.

This interests operators, investors, producers, engineers and designers of renewable energy projects. When developing our Iron Salt Battery, the Levelized Cost of Storage (LCOS) is an important benchmark.

LCOS is the measure of the average current cost of power output. In doing so, it considers all costs incurred for the installation, charging and discharge of the energy storage system over its entire service life.