Global Battery Energy Storage Systems Set To Reach 14 GW By 2020, Says GlobalData
According to a new report from research and consulting firm GlobalData, the installed capacity of global battery energy storage systems will grow from 1.5 GW in 2015 to 14 GW in 2020.
GlobalData’s latest report, Grid Connected Battery Energy Storage System — Market Size, Competitive Landscape, Key Country Analysis and Forecasts to 2020, posits that the introduction of battery energy storage systems, or BESS, will continue to grow as renewable installations continue to increase and focus on grid stability is prioritized. BESS will provide numerous benefits for the power sector, including resolving concerns over energy time shift, load following and frequency regulation, renewable capacity continuity, transmission congestion relief, and energy tariff cost management.
Further, BESS prices have already been declining in the fact of technological innovation, improvement in the manufacturing process, and growing competitiveness. BESS prices are expected to only continue to decline, falling by almost half from 2015 to 2020.
“Climate change concerns, government initiatives including renewable portfolio standards, and consumer efforts are resulting in increased deployment of solar and wind resources,” said Swati Gupta, GlobalData’s Analyst covering Power. “However, the variability of solar and wind power makes it hard for electricity providers to integrate them into the electricity grid. To achieve this, BESS are being installed into electricity grids to make the power supply from renewable energy sources smoother and more reliable.”
The US currently has the largest BESS market, valued at over $750 million in 2015, and is expected to continue to lead through 2020, with its market value reaching an impressive estimated $1.7 billion by 2020.
“The US market for energy storage has so far been focused on frequency regulation – in other words, storage to balance out swift, short-term variation in power output,” added Gupta. “The country’s BESS market will expand as renewables continue to penetrate the power market.”
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