Global battery energy storage system (BESS) installed capacity has been forecast to jump from 1.5 gigawatts last year to more than 14 GW globally by 2020.
The prediction comes from GlobalData in its latest report: Grid Connected Battery Energy Storage System – Market Size, Competitive Landscape, Key Country Analysis and Forecasts 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 GlobalData’s Analyst Swati Gupta.
“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.”
In the USA alone, GlobalData expects the BESS market to reach a value of approximately USD$1.7 billion by 2020. While until recently the US market for energy storage has primarily revolved around frequency regulation, the US market will expand as uptake of renewable energy sources such as wind and solar power further accelerates.
The research firm says improvements in technology, manufacturing processes and growing competition have already driven down BESS prices – and the trend is set to continue.
The report also provides market analysis of key countries, including Australia.
Another firm, GTM Research, last year forecast Australia will hit 244 megawatts of annual installed battery capacity by 2020; primarily driven by the home battery storage market.
According to solar provider Energy Matters, a suitably sized and professionally installed solar + storage system can reduce mains grid power consumption by up to 80%. The energy savings benefit, if any, varies from scenario to scenario and depends on factors such as the system used, installation design and electricity consumption profile of the end-user.
Energy Matters provides a free online battery storage calculator that can help those considering increasing their energy independence to get a rough idea of what sort of benefits can be reaped by installing batteries.
Commercial battery storage in Australia is expected to also grow rapidly over the next 4 years as more businesses seek to take greater control over their energy costs. This growth will be assisted by the local availability of next-generation commercial battery solutions such as Tesla Powerpack.
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