ENERGY STORAGE PARTNERSHIP (ESP) January 2020 Fact Sheet A GLOBAL PARTNERSHIP CONVENED BY THE WORLD BANK GROUP TO FOSTER INTERNATIONAL COOPERATION TO ADAPT AND DEVELOP ENERGY STORAGE SOLUTIONS FOR DEVELOPING COUNTRIES Energy transitions are underway in many countries, with a significant global increase in the use of wind and solar power playing a key role. To integrate renewable resources into grids, energy storage will be key. Storage will allow for the increased use of wind and solar power, which can not only increase access to power in developing countries, but also increase the resilience of energy systems. Energy storage solutions can also improve grid reliability, stability, and power quality – which are essential to promoting the productive uses of energy. To enable the rapid uptake of variable renewable approaches to energy storage in tandem with energy in developing countries, the World Bank strengthening electricity grid infrastructure will create Group is convening an Energy Storage Partnership more resilient power systems and bring cost savings to (ESP) that will foster international cooperation on: utilities and consumers. In developing countries, renewable energy with storage o Power Systems can also offer local alternatives to fossil-based o Test bed for knowledge dissemination and generation to bridge the electricity access gap. Among capacity building the energy storage options available, battery storage is o Development of testing protocols and becoming a feasible solution to increase system validation of performance flexibility, due to its fast response, easy deployment and o Flexible sector coupling cost reduction trends, helping to integrate higher shares o Decentralized energy storage solutions of variable renewable energy in a reliable manner. This is o Procurement frameworks and enabling particularly relevant in weak grids, isolated locations, and policies for energy storage vulnerable environments where supplying electricity has o Recycling systems and standards its own challenges. An all-technology approach to storage should be pursued. The ESP will complement the World Bank’s $1 billion battery storage investment program announced in Today, the unique requirements of developing countries’ September 2018 to significantly scale up support to grids are not yet fully considered in the current battery battery storage projects and raise an additional $1 billion storage market – even though these countries may have in concessional finance. the largest potential for battery deployment. The current battery market is driven by the electric vehicle industry, and most mainstream technologies cannot provide long Catalyzing a new market for storage duration storage or withstand harsh climatic conditions and low operation and maintenance capacity. Many There is a need to catalyze a new market for batteries developing countries also have limited access to other and other energy storage solutions that are suitable for flexibility options such as natural gas generation or electricity grids for a variety of applications and increased transmission capacity. deployable on a large scale. Deploying diverse IT IS EXPECTED THAT BY 2025 THE YEARLY CO2 SAVED COULD REACH 2Gt IN THE POWER SECTORS OF DEVELOPING COUNTRIES. To sustainably scale up the deployment of energy countries and ultimately enable more integration of storage in developing countries, technologies will need to variable renewable energy. By connecting stakeholders be able to operate in harsh climatic conditions, supply and sharing experiences in deploying energy storage, the electricity over long duration periods, and sustainably ESP will help bring new technological and regulatory manage issues such as the reuse and recycling of solutions to developing countries, as well as help develop batteries. With the recent launch of its Climate-Smart new business models that leverage the full range of Mining Facility, the World Bank has committed to help services that storage can provide. The ESP will take a developing countries to conduct the mining of strategic holistic, technology-neutral approach by looking at all minerals in a sustainable manner. forms of energy storage, including but not limited to batteries. By developing and adapting new storage Objectives of the Energy Storage Partnership solutions to the needs of developing countries, the ESP will help expand the global market for energy storage, To open new markets for energy storage in developing leading to technology improvements and accelerating countries, several barriers will need to be addressed: the cost reductions over time. lack of knowledge about and exposure to new technologies and their applications; regulatory and policy Activities coordinated by the ESP will identify technical environments that are unable to guarantee cost recovery; and research gaps; pilot innovative storage concepts, and procurement practices that are not yet adapted to including storage used to integrate VRE and increase the energy storage investments. flexibility of power systems; and build a platform for knowledge sharing and capacity building, among other An international approach to research and development, activities. The ESP will be hosted at the World Bank’s knowledge-sharing, training, and capacity building has Energy Sector Management Assistance Program been identified as an important way to encourage the (ESMAP) and will be developed and implemented in uptake of energy storage technologies in developing partnership with other organizations. ESP Partners Australian Energy Storage Alliance (AESA) • Alliance for Rural Electrification (ARE) • Belgian Energy Research Alliance (BERA) • Center for Applied Energy Research (ZAE), Germany • China Energy Storage Alliance (CNESA) • Council for Scientific and Industrial Research (CSIR ), South Africa • Energy Storage Applications Branch (ESA) of China Industrial Association of Power Sources • European Association for Storage of Energy (EASE) • European Bank for Reconstruction and Development (EBRD) • Faraday Institution, U.K. • German Energy Storage Association (BVES) • Global Battery Alliance (GBA) / World Economic Forum (WEF) • Government of United Kingdom • India Energy Storage Alliance (IESA) • Innovate UK • Inter-American Development Bank (IaDB) • International Council for Large Electric Systems (CIGRE) • International Energy Agency (IEA) • International Renewable Energy Agency (IRENA) • Korea Battery Industry Association (KBIA) • Korea Institute for Advancement o f Technology (KIAT) • Moroccan Agency for Sustainable Energy (MASEN) • National Institution for Transforming India (NITI Aayog) • National Physical Laboratory (NPL), U.K. • National Research Council Canada (NRC-CNRC) • Power Grid Corporation of India (POWERGRID) • Protermo Solar, Spain • Research Institute in Solar Energy and New Energies (IRESEN), Morocco • Solar Energy Corporation of India (SECI) • South Africa Energy Storage Association (SAESA) • Technical University of Denmark (DTU) • U.K. Low Carbon Energy Development Network, Loughborough University • U.S. Energy Storage Association (ESA) • U.S. National Renewable Energy Lab (NREL) • World Bank Group, ESMAP For more information: Contacts: www.worldbank.org/energy • Heather Worley, hworley@worldbank.org https://www.worldbank.org/en/topic/energy/brief/battery-storage-program-brief • Fernando De Sisternes, fsisternes@worldbank.org