August 20, 2020 Read More →

IHS Markit: Global energy storage market could top 15GW by 2025

Energy Storage News:

The market for grid-connected energy storage will defy the “headwinds” caused by the coronavirus pandemic on industries across the world, analysis firm IHS Markit has predicted.

The team at the IHS Markit Energy Storage Service has forecast that global installations will grow by over 5GW this year, despite disruption caused by COVID-19. Battery energy storage is becoming increasingly able to competitively provide critical capacity to energy networks, the analysts said, particularly in the US, which is currently the world’s biggest market for grid battery storage.

After what was a relatively low level of installations in 2019 of 2.7GW, the rebound that began with a strong first quarter of 2020 will continue on, IHS Markit believes, with annual installations set to rise fivefold between 2019 and 2025. While installation figures could reach 15.1GW / 47.8GWh, hardware revenues will increase from US$4.2 billion this year to US$9.5 billion in 2025. At the same time, battery module prices are expected to fall around 32% in those years.

In the release sent to Energy-Storage.News today on IHS Markit’s revised forecasts, the analysis team reasserted that the US will remain the largest market for a number of factors: “ambitious” deployment targets at state level brought in by a handful of jurisdictions, a “strong pipeline” of solar-plus-storage projects looking to capitalise on investment tax credit (ITC) incentives, as well as the bigger picture issue of energy storage being looked upon as an effective way to provide firm capacity to the grid.

China, which has so far been slower to deploy energy storage projects at home than perhaps it has been to export energy storage equipment and technologies, will “see a resurgence in energy storage uptake,” IHS Markit forecasts, with various provinces looking to deploy solar PV projects co-located with battery storage, allowing them to reach higher shares of renewable energy on their networks. China alone will deploy 6.5GW of grid-connected storage between now and 2025, the research team said.

New opportunities are developing in Europe too, strengthening outlook, including France’s tendering for low-carbon assets to participate in its capacity market (CM) – which earlier this year led to the award of 253MW of CM contracts for energy storage developers. Finally, wholesale arbitrage in select territories: so far mainly the United Kingdom and Australia, signals a “turning point as merchant energy storage breaks into a new opportunity,” the release said.

[Andy Colthorpe]

More: Opportunities develop for battery storage ‘despite the turmoil caused by COVID-19’, IHS Markit says

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