The global energy storage market is expected to double, from 1.4 gigawatt hour (GWh) added in 2015 to 2.9GWh this year, offering unique growth prospects for energy companies as global energy markets continue to cool.
Global grid-connected energy storage capacity will surge to 21GWh by 2025, according to IHS Markit, a world leader in critical information, analytics and solutions. Throughout the next decade, Lithium-ion (Li-ion) batteries will become the mainstream energy-storage technology, and more than 80 per cent of global energy storage installations will include the technology by 2025, according to the report,
“Energy storage is set to grow as fast as solar photovoltaic energy has in recent years, sparking strong interest from a wide range of players and underscored by recent mergers and acquisitions among car manufacturers, major oil and gas companies, and conventional power suppliers,” IHS Markit principal analyst Marianne Boust said.
“The United States and Japan are leading the way, but we’re also seeing activity in South Africa, Kenya, the Phillippines and other countries, as the cost of batteries continues to decline.”
According to the IHS Markit Grid-Connected Energy Storage Forecast Database, Japan and the US will be the largest energy storage markets, generating a third of market revenues totaling $50 billion throughout the next decade. In Australia and Japan, energy storage penetration is expected to exceed 5 per cent of installed power capacity in 2025, underscoring the growing role that energy storage will play in grid stability, renewable integration and overall energy management.
Half of all energy storage installations will occur behind the meter, driven by self-consumption and back-up needs. Eight countries will each have cumulative behind-the-meter storage power exceeding 1GWh, including Japan, China and the US.
“Looking ahead to the future, half of all energy storage will come from households and businesses seeking to control their energy consumption, which will massively disrupt the traditional business models from established utilities and large equipment manufacturers,” Ms Boust said.