APEC Energy Working Group August2025 APEC Urban Energy Report2024:Storage to Enable EnergyTransition APECEnergyWorking Group August2025 APEC Project: EWG 03 2024S Produced byAPEC Sustainable Energy Center (APSEC)Tianjin University216 Yifu Building, 92 Weijin Road, Nankai District, Tianjin 300072 ChinaTel: + (86) 022-2740 0847Email: apsec2014@126.com ForAsia-Pacific Economic Cooperation Secretariat35 Heng Mui Keng TerraceSingapore 119616Tel: (65) 68919 600Fax: (65) 68919 690Email: info@apec.orgWebsite: www.apec.org © 2025 APEC Secretariat APEC#225-RE-01.10 APECPROJECT Research onEnergyStorage toEnableEnergyTransition in APEC cities(EWG 03 2024S) PROJECTOVERSEER Jinlong MA IMPLEMENTINGORGANIZATION APEC Sustainable Energy Center, Tianjin University, China PROJECTTEAM ANDREPORTAUTHORS Jinlong MALi ZHUYong SUNZhexing YANPengfei XIEYujiao HUOSteivan DEFILLA ACKNOWLEDGEMENT The Project Team and Overseer sincerely thank the experts who contributed their invaluable insightsandinsightfulsuggestions during the project workshop. Special recognition is extended to the membereconomies of the Energy Working Group (EWG) for their constructive feedback on the draft report.Additionally, the team deeply appreciates the meticulous guidance and expertise of the APEC PublicationUnit, which played a critical role in refining the final version of this publication. Executive Summary Urban areasarethe principal centers of economic activity and the essential provision of daily lifenecessities, making them the focal points where energy consumption is significantly concentrated. The densepopulation coupled with the high level of industrial and commercial activities within cities contributes to thisphenomenon.Consequently, cities are uniquely positioned to influence global energy transitions, as theirconcentrated energy usage underscores the need for advanced systems to meet these demands efficientlywhile addressing environmental concerns.Urban areas now house over 55% of the global population and areresponsible for consuming more than two-thirds of the world’s energy. Additionally, these densely populatedregions contribute approximately 50–60% of the total global carbon emissions, emphasizing their critical rolein addressingenvironment and energy relatedchallenges. This significant concentration of energy usage andemissions positions cities as pivotal arenas in the global effort to combat climate change and achieve carbonneutrality. Urban centers are uniquely positioned to act as critical focal points in the pursuit of increasing theintegration of renewable energyresources, implementing cutting-edge energy technologies, enhancingenergy system resilience, stability andoverall energy efficiency. Thesenecessitates the formulation ofmultifaceted approaches to energy management that incorporate advancements in technology, rigorousgovernanceand regulatoryframeworks, comprehensive policy initiatives, and robust regulatory mechanisms.Furthermore, achieving energy transitions in urban areas involves fostering conducive business environmentsand market conditions that support the adoption of innovative energy solutions. The continued research and development in the domain of urban energy systems within the APEC regionhold profound importance for guiding the transition toward low-carbon energy practices and addressing thegrowing demand for sustainable solutions. Such efforts are instrumental in fostering a holistic approach thatmerges economic growth, energy efficiency, and environmental sustainability. By exploring innovativestrategies and technologies, the region can effectively navigate the complexities of urban energy challenges,ensuring that cities remain resilient and adaptable in the face of shifting energy demands. Furthermore, thiswork contributes to the broader goals of achieving carbon neutrality and advancing green energy transitions,positioning the APEC region as a leader in global efforts to harmonize urban development with energy andenvironmental objectives. Urban energy systems are facing a range of challengessuch aslarge-scale and high-proportiondevelopment and utilization of renewable energy,secureand stable energy supply,energy system resilience,improvement of energy efficiency.There is broad consensus that the deployment of energy storagetechnologiescanplay a vital role in addressing these challenges. With diverse functionalities, energy storagecan provide a wide range of services to energy systems,asa key pillar for the green and low-carbontransitionof energy systems. Energy storage can effectively complement with variable renewable energy sources such as wind and solar, facilitating the large-scale development and consumption of renewable energies.As arepresentativefast andflexible resource, energy storage canenhancesecurity, resilience, flexibility,andreliability, and technical and economic efficiency of energy systems, deploying energy storage can enableinjecting new momentum into and enable urban g