The global battery energy storage system market (BESS) is poised to grow dynamically by 2020, increasing from 1.5GW in 2015 to reach 14GW, says a GlobalData report.
Titled ‘Grid Connected Battery Energy Storage System – Market Size, Competitive Landscape, Key Country Analysis and Forecasts to 2020’, the report states the growth will be a result of the increasing share of renewable energy in the power sector, as well as a reduction in battery system’s cost.
The market witnessed disparate activity from 2010 to 2015, but many major projects are about to be commissioned in the near future.
Renewable energy sources such as solar and wind are being integrated in the power grids giving rise to the need for energy storage system. The varied range of such systems include CAES and flywheels based on electro-mechanical technology, batteries and super-capacitors based on electro-chemical technology, and PHS.
The Energy Roadmap 2030 by the International Renewable Energy Agency (IRENA) states that 475GW of energy storage systems will be required to meet a target of 45% of renewable energy in the power mix by 2030.
According to the GlobalData report, the US leads the BESS market with a value of approximately $750m in 2015, which is expected to reach $1.7bn by 2020. This growth in the Americas region is backed by mandatory targets and regulatory frameworks for energy storage installation. The region is also forecasted to achieve 4.1GW in cumulative capacities of installed BESS projects by 2020, compared to 592MW in 2015. It is estimated to be a $3bn market by 2020.
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The Japanese, German, and Chinese BESS markets are also expected to grow to $1.5bn, $1.2bn, and $1.07bn by 2020, respectively. The number of BESS projects installed in Asia-Pacific (APAC) and European countries is also set to increase by 2020 to 5.8GW and 4.6GW respectively, compared to 720MW and 208MW in 2015.