G7 countries are considering a goal to increase global electricity storage capacity sixfold by 2030, according to a draft document seen by the Financial Times. The target of 1,500 gigawatts in 2030, up from 230GW in 2022, includes the use of batteries, hydrogen, and other solutions to store electricity. Energy storage aims to stockpile excess energy when conditions for renewables are optimal and discharge it as necessary. The draft also proposes backing a push by wealthy countries to end subsidies for fossil fuel development abroad. The move comes as G7 energy and climate ministers prepare to meet this weekend to discuss the shift away from coal and toward renewable energy sources.
Key Takeaways
- G7 countries aim to increase global electricity storage capacity sixfold by 2
Analysis
The G7's proposal to increase global electricity storage capacity sixfold by 2030 could significantly impact energy markets, renewable energy adoption, and countries reliant on fossil fuels. This ambitious target, if realized, would drive demand for battery technology, hydrogen storage solutions, and other energy storage technologies. Countries such as China, South Korea, and the US, leading producers of battery materials and components, could benefit from the increased demand.
However, countries heavily invested in fossil fuel extraction and export, such as Russia, Saudi Arabia, and Canada, may face economic challenges due to phased-out subsidies and reduced demand. The shift toward cleaner energy sources also poses disruption risks for oil and gas companies, compelling them to adapt or risk becoming obsolete.
Short-term consequences include hastened development and adoption of energy storage technologies, as well as potential geopolitical shifts. Long-term impacts may include significant reductions in greenhouse gas emissions and a global energy landscape less reliant on volatile fossil fuel prices.
Did You Know?
- Electricity storage capacity
- This refers to the ability to store excess electricity generated from renewable energy sources, such as solar or wind power, when conditions are optimal. The stored electricity can then be discharged as needed to balance supply and demand on the grid.
- Batteries, hydrogen, and other solutions
- Batteries, such as lithium-ion batteries, are one of the most common ways to store electricity. They work by storing electrical energy in a chemical form and releasing it as electricity when needed. Hydrogen, on the other hand, can be used as a energy carrier and stored for later use. It can be produced through the electrolysis of water using excess renewable energy, and then converted back to electricity through a fuel cell. Other solutions for electricity storage include pumped hydro storage, compressed air energy storage, and flywheels.
- Ending subsidies for fossil fuel development abroad
- This refers to the proposal by G7 countries to stop providing financial support for the development of fossil fuel projects in other countries. The goal is to promote the use of cleaner and more sustainable energy sources, and to reduce greenhouse gas emissions. This move is part of a broader shift away from coal and toward renewable energy sources, which is expected to be discussed at the upcoming meeting of G7 energy and climate ministers.