The clean energy transition is just getting started with much more to come in 2024

Acknowledging that the world at the end of 2023 is an increasingly challenging one, Eric Dresselhuys of ESS Inc. shares his expectations for the clean energy transition in 2024.

The year 2023 was a record-setting year for investment and growth in clean energy, with the International Energy Agency projecting over 500GW of new renewable capacity to come online by year-end globally. Energy storage, a critical component of a fully renewable grid, also saw record growth in 2023 and Bloomberg New Energy Finance has forecast a 27% compound annual growth rate to 2030 to enable renewable growth.  

These trends were supercharged at COP28, where over 100 countries committed to a tripling of renewable energy capacity by 2030. As these bold commitments trickle down to the state and local level, specific policies and roadmaps will emerge to accelerate the deployment of wind, solar and energy storage technology. 

These policies and roadmaps will not be developed in a vacuum. The world at the end of 2023 is an increasingly challenging one, with geopolitical instability, lingering supply chain uncertainty and broader concerns for global environmental justice influencing policy and investment decisions.

These considerations will shape the growing clean energy sector as countries seek solutions that reduce carbon emissions, increase energy security, and ensure environmental sustainability and economic opportunity for their citizens.

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Looking ahead to 2024, we anticipate:  

Concrete policy commitments for clean energy deployment 

In 2024, countries will promulgate specific plans and targets to accelerate policy momentum and achieve the ambitious targets set at COP 28. In the United States, the Inflation Reduction Act is already providing substantial funding for new clean energy projects at the federal level while individual states set ambitious deployment targets. Just last month, the state of Michigan set an energy storage deployment target of 2,500 MW by 2030, joining 10 other states with concrete storage targets. 

This is not limited to the U.S. In Australia, the government of New South Wales has set a goal of 2 GW of long-duration energy storage installed by 2030, and the state of Victoria is committed to 2.6 GW of storage online by 2030. Similar targets are being implemented or considered in Europe and elsewhere globally. In 2024, the race to set and achieve bold clean energy targets will intensify.

Energy security will remain centre-stage

Following the Russian invasion of Ukraine in 2022, energy security became one of the top considerations of policymakers, energy companies and consumers worldwide. Instability in global oil markets served as a reminder of the risks associated with reliance upon globally traded energy commodities controlled by a small group of countries.

Fortunately, an economy powered by renewable energy is potentially much more secure and resilient than one reliant upon fossil fuels. As the clean energy transition accelerates, expect that policymakers will pay close attention to both security of energy supply and security of technology supply: 

• Security of energy supply: Decentralized energy generation reliant upon wind and solar energy is inherently more resilient than large-scale, centralized power grids. In 2024, deployment of these decentralized models will accelerate as utilities and regulators continue to see the advantages. For example, ESS technology is powering a solar + storage microgrid at an industrial recycling facility in Pennsylvania which enables the company to operate seamlessly during grid outages, while also significantly reducing carbon emissions.  

• Security of technology supply: Chokepoints in the global clean energy supply chain are beginning to emerge. Today, energy storage = lithium-ion and the supply chain for lithium-ion batteries runs through a small number of countries, creating supply chain risks. In contrast, new alternatives such as iron flow battery technology, are able to leverage broad supply chains thanks to Earth-abundant materials and commonly available components, mitigating supply chain security risks.

The security advantages of renewable energy will continue to shape energy policies and accelerate the clean energy transition in 2024. 

Circular economy principles will factor into decision making 

In addition to security considerations, in 2024, the environmental, social, and economic impacts of clean energy technology will increasingly factor into procurement decisions. Growing attention to resource and carbon-intensive supply chains and concerns about end-of-life disposal will favour technologies with superior environmental profiles over those which require intensive mining, manufacturing and recycling processes. 

Emerging iron-based energy storage technologies offer one example of an inherently more sustainable alternative. Earth’s abundant materials and commonly available mechanical components can be readily recycled or repurposed at end of life. Additionally, iron flow batteries have approximately one-third the carbon footprint of Li-ion technology, further reducing sustainability risks.  

Emerging technologies will come of age 

In response to these broader trends, over the next year, new clean energy technologies will become established and grow from megawatt-hour to gigawatt-hour scale.   

This trend is already beginning. In Australia, ESS technology will enable the retirement of large coal-fired power stations. An initial iron flow battery pilot project is currently being installed at the Stanwell Power Station in Queensland, Australia, to be followed by a 150 MW installation with options for a further 200 MW per year beginning in 2026.

In Europe, the continent’s largest clean energy hub is in the early stages of development by LEAG, a major German energy generator. When complete, the hub will include 7-14 GW of renewable generation paired with 2-3 GWh of long-duration energy storage to provide green baseload energy and effectively replace coal generation. ESS is partnering with LEAG to supply the long-duration storage component and engineering work is already underway, with delivery of the first 500 MWh iron flow battery system expected in coming years.  

Going forward, these early large-scale projects will provide a blueprint for the clean energy transition and demonstrate how to deliver resilient, clean, baseload energy without fossil fuels.

2024 promises to be an exciting year in the clean energy industry as commitments from COP take shape and renewable deployments accelerate. At ESS, we look forward to continuing to build and deliver safe and sustainable long-duration energy storage solutions and working with our partners to deliver the paradigm-shifting projects which will be the blueprint for the clean energy future.

About the author
Eric Dresselhuys is the CEO of ESS Inc. and joined the long-duration energy storage company in 2021. Dresselhuys has over 25 years of leadership experience and is an accomplished technology and market development pioneer with a demonstrated background in growing both public and private companies.