The German energy storage market is expected to grow substantially between 2015 and 2021, according to GTM Research, reaching an annual value of $1.03 billion.
According to a new report from energy research and consulting firm GTM Research, entitled The German Energy Storage Market: 2016-2021, Germany’s energy storage market — already one of the world’s leading energy storage markets — is expected to grow elevenfold in megawatt terms between 2015 and 2021, reaching an annual value of $1.03 billion.
The market sat at $169 million at the end of 2015, with 67 MW of energy storage installed, and is expected to reach $339 million by the end of this year, before skyrocketing to $1.03 billion in 2021.
“Germany already possesses one of the world’s largest residential energy storage markets,” said Brett Simon, GTM Research energy storage analyst and author of the report. “A number of variables, including declining feed-in tariffs, high electricity prices, and the KfW 275 program, are fueling substantial interest in residential energy storage for self-consumption.”
The existing and expected-continuing dominance of the country’s residential energy storage market is helped along by the country’s KfW 275 incentive, which covers up to 22% of the system costs for energy storage systems paired with a new or existing solar installation. The incentive decreased from 30% between 2013 to 2015 to its current 22%, and will step down 3% every half-year.
GTM Research’s report further identifies opportunities for utility-scale energy storage, which is Germany’s second-largest energy storage segment. Six primary reserve systems accounting for 90 MW expected to come online in 2016 and 2017.
“Utility-scale systems have been deployed for primary reserve for the past few years, though significant deployments did not begin until 2016,” notes Simon. “However, the market will saturate by the end of 2017, and thus utility-scale systems will need to pursue other value streams.”
Beyond 2017, Germany’s secondary reserve market will need to pick up the slack left by oversaturation in the primary reserve market.
Germany’s non-residential energy storage market only installed 2.7 MW in 2015, making it the smallest market segment.
Don't want to miss a cleantech story? Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News!
Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.