Analyst Insight: Energy Storage in Emerging Markets

Energy storage systems (ESS) are fundamental to creating a smarter, more flexible energy system and will be a crucial enabler in the energy transition. Globally, countries are recognizing the benefits provided by these technologies, including grid-balancing services and frequency regulation. However, ESS deployment to date has focused on select markets. The US, China, and several European countries, among others, are home to significant storage capacity, installed in preparation for the continued proliferation of renewables as these nations look to diversify power generation.

Emerging markets in Asia Pacific, Latin America, and the Middle East & Africa are looking to follow suit. As renewable energy deployments expand and energy demand rises, ESS will become essential in these regions. Driven by the need to modernize grid infrastructure in the face of rapid population growth and increasingly frequent extreme weather events, developing countries are pursuing energy storage projects at scale to move away from centralized grid architecture and develop modern, reliable power solutions.

This Analyst Insight documents energy storage technologies in emerging markets. Using data from Guidehouse Insights’ Energy Storage Systems Tracker 2Q23, the report provides information on currently tracked projects by region and storage type, assesses market drivers and barriers, analyzes two regions with specific case studies, and provides key recommendations for industry stakeholders.