New energy storage bottleneck

Are Transformers The new bottleneck of energy storage supply?

“While global battery supply eased in 2023, after experiencing tightness in supply the previous year, the limited supply of transformers has become the new bottleneck of the energy storage supply chain,” says Kevin Shang, a senior research analyst in Wood Mackenzie.

Could a bottleneck slow the energy transition?

Low-carbon energy technologies are growing, but bottlenecks could slow the energy transition at a time when the rollout of clean technologies needs to accelerate.

Why do energy companies have a bottleneck?

Energy companies are investing hundreds of billions of dollars in wind farms, solar arrays and batteries, spurred on by federal tax breaks and falling costs. But these projects face a severe bottleneck: It is getting harder and taking longer to connect new power plants to the power lines that carry electricity to homes and businesses.

Is grid interconnection still a bottleneck?

“It is promising to see the unprecedented interest and investment in new energy and storage development across the U.S., but the latest queue data also affirm that grid interconnection remains a persistent bottleneck,” said Joseph Rand, an Energy Policy Researcher at Berkeley Lab, and lead author of the study.

What is a bottleneck & how will it affect the future?

The highest-risk bottleneck is projected to be in materials—specifically the supply of rare earth metals for magnets, with severe imbalances in magnets for predominantly offshore wind expected by the end of this decade. Medium-risk bottlenecks could arise in land, infrastructure, and investment.

Can unlocks help address energy bottlenecks?

Although the identified bottlenecks pose major risks for a successful, fast, and orderly energy transition, there are also multiple unlocks that are available today to resolve them and thus mitigate the risks of a delayed transition. When assessing these unlocks, we found that they can help address 11 out of the 16 bottlenecks.