You are viewing 1 of 1 articles without an email address.


All our articles are free to read, but complete your details for free access to full site!

Already a Member?
Login Join us now

Global grid-connected energy storage deployment will reach 15.1 GW by 2025

The energy storage market has benefited from a strong start to the year, with residential markets buoyant and large utility-scale pipelines being realised.

LinkedInTwitterFacebook
Growth highlights the increasing competitiveness of battery energy storage
Growth highlights the increasing competitiveness of battery energy storage

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.

 

Critical capacity

 

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 US will remain the largest market with growth driven by an ambitious round of state-level targets, a strong pipeline of solar-plus-storage projects capitalising on the Investment Tax Credit (ITC) and increasing competitiveness of batteries as a source of firm capacity
  • China will see a resurgence in energy storage uptake as provinces begin to look to storage co-located with solar PV as a means of firming up increasingly high penetrations of renewable assets on the grid. China is forecast to install 6.5 GW through 2025 and be the second largest market throughout the forecast period
  • The outlook in Europe has strengthened as new opportunities develop in a wide range of countries. For example, a capacity auction in France will support 253 MW of energy storage by 2023
  • Wholesale arbitrage is becoming a major driver for front-of-the-meter (battery) energy storage in Australia and the UK, signalling a turning point as merchant energy storage breaks into a new opportunity.

“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.

 

You might also like:

LinkedInTwitterFacebook
Add New Comment
You must be a member if you wish to add a comment - why not join for free - it takes just 60 seconds!