The energy storage market has benefited from a strong start to the year, with residential markets buoyant and large utility-scale pipelines being realised.
The global grid-connected energy storage market, which endured its first ever year-on-year decrease last year, is predicted to rebound in 2020 despite ongoing impacts from Covid-19, new research suggests.
London-based global information provider IHS Markit’s Energy Storage Service reports global installations growing by more than 5 GW in 2020 despite the disruption caused by the global pandemic.
The growth highlights the increasing competitiveness of battery energy storage to provide critical capacity, especially in the US, the world’s largest market, according to IHS Markit.
“The fact that the energy storage industry is proving resilient and has resumed a growth trajectory during the pandemic and subsequent economic shock proves that the 2019 market retraction was an aberration,” said Julian Jansen, research manager, IHS Markit.
“The 2020 rebound highlights the importance of the technology and the strength of the underlying market fundamentals.”
The energy storage market has benefited from a strong start to the year, with residential markets buoyant and large utility-scale pipelines being realised, as well as markets in the US and China quickly rebounding from the drop in 2019.
“The increasing competitiveness and critical role of battery energy storage assets in supporting the decarbonisation and resilience of the electricity system means that opportunities for energy storage continue to develop”
IHS Markit has increased its forecasts and now expects a fivefold rise in annual installations from 2019 to 2025, reaching 15.1 GW/47.8 GWh. Annual grid-connected energy storage hardware revenues are projected to more than double from $4.2bn in 2020 to $9.5bn in 2025. This is despite falling battery module prices, which are expected to plummet by 32 per cent during this timeframe.
Changing dynamics and strengthening fundamentals in several markets will drive most installations in the coming years:
“The increasing competitiveness and critical role of battery energy storage assets in supporting the decarbonisation and resilience of the electricity system means that opportunities for energy storage continue to develop despite the turmoil caused by the Covid-19 pandemic,” added Jansen.
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