Energy Transition 2024: DNV Report Highlights the Critical Role of Energy Storage

DNV is an internationally recognized registrar and classification society, formed in 2012 by the merger of the 160 year old Det Norske Veritas and the 163 year old Germanischer Lloyd. It has long been a leader in technical inspections. Nowadays, it operates in over 100 countries, providing key services in industries such as maritime, oil and gas, renewable energy, and electrification.

However, DNV recently released an energy transition report emphasizing a key turning point: global emissions are expected to peak in 2024. It is expected that by the end of this century, global warming will reach 2.2 degrees Celsius, with some regions already exceeding the threshold of 2 degrees Celsius. This indicates an urgent need to accelerate action, especially in the energy storage sector, which plays a crucial role in supporting the transition to renewable energy.

According to DNV's Energy Transition Outlook, energy related emissions are entering a long-awaited period of decline driven by the sharp drop in solar and battery storage costs. Last year, solar installations surged by 80% while battery costs decreased by 14%, making renewable energy and electric vehicles increasingly popular. This growth is reflected in China, which dominates the global solar and electric vehicle markets. However, despite rapid progress in some industries, areas such as hydrogen and carbon capture are lagging behind, highlighting the need for advanced energy storage solutions to ensure grid stability.

The success of renewable energy sources such as solar energy depends on an effective energy storage system that can balance supply and demand. With the continuous growth of wind and solar energy, energy storage solutions will play a key role in managing intermittent power generation, making technologies such as lithium-ion batteries crucial for the future power grid.

In addition, DNV's report emphasizes the importance of artificial intelligence in promoting intelligent development in the energy sector. It is expected that by 2050, artificial intelligence will account for 2% of global electricity demand. Although this proportion is not large, the application of intelligent energy management systems will further optimize power distribution and improve overall energy utilization efficiency. With the support of electrification and intelligent technology, despite global population and economic growth, the total energy demand is expected to increase by only 10%.

Electric vehicles play a crucial role in the energy transition. DNV predicts that by 2031, 50% of new car sales will be electric vehicles. By 2050, electric vehicles are expected to account for 62% of global passenger cars, which is crucial for reducing fossil fuel dependence and carbon emissions in the transportation sector. Behind this transformation, advanced energy storage technology plays a crucial role in ensuring the smooth supply of renewable energy, optimizing power distribution, and supporting 24-hour power demand, thereby promoting the realization of clean transportation.

Despite significant progress being made in the global energy transition, particularly in the fields of solar energy and energy storage technology, DNV's report warns us that the current pace of transition is still insufficient to address climate challenges. For enterprises in the energy storage and new energy industries, this is both a challenge and a significant opportunity. Shenzhen YOUESS continuously innovates and expands its solutions to help accelerate the global transition to a sustainable energy system and further promote the widespread application of renewable energy, providing strong support for a green future.