Battery Energy Storage Systems Market – Snapshot
Battery energy storage systems are used to store the electricity generated by power plants, especially renewable power plants. This electricity is then used to ensure smooth supply to consumers when power generation from renewable power plants fluctuates due to weather conditions.
Investment in renewable energy plants and associated battery energy storage systems a major market driver
Different countries are initiating new development programs, raising funds, or entering into public–private partnerships to promote the use of renewable energy through development of battery energy storage systems. For example, in China, the government is encouraging emerging battery energy storage system technologies to support micro grid development and renewables integration. In 2016, the government of China released a 15-year energy technology innovation action plan for further research in advanced energy storage. In 2014, the U.S. government invested US$ 34 Bn in solar power plants, wind farms, and other renewable energy projects.
Lack of standards to ensure safe installation and usage of battery energy storage systems an important restraint for the market
A report by Australia’s Commonwealth Scientific & Industrial Research Organization (CSIRO) investigated safety issues and regulations regarding battery technologies of 1–200kW capacity. No consensus was formed on the precise method to extinguish a lithium-ion battery fire. In another example, in January 2013, Boeing 787 Dreamliner commercial jets suffered safety issues, due to electric issues caused by lithium-ion batteries.
Rise in demand in the residential sector is creating growth opportunities for the battery energy storage systems market
Policies such as net metering 2.0, net zero export limitations, and devaluation of exported solar PV are augmenting the demand for battery energy storage systems in the residential sector. Net metering (net energy metering, NEM) helps consumers who produce their own electricity to use that electricity any time. This is particularly important with wind and solar energy. Establishment of tax credit for standalone storage is expected to improve the economic scenario for the battery energy storage systems market. Deployment of energy storage systems in the U.S. is expected to increase in the near future. Since 2012, Panasonic Corp. has started mass production of compact lithium-ion battery storage systems for the residential sector in Europe. In countries across Europe, there is a growing movement among residents to adopt rooftop solar systems, motivated by the need to reduce energy costs and increase in pricing incentives by governments.
Battery energy storage systems market is undergoing the introductory phase
The growth rate at which the global battery energy storage systems market is expanding has increased over the last few years. This is due to economies of scale led by the increasing number of projects. The same trend is expected to continue during the forecast period, further aided by the constant decline in prices of energy storage batteries.