The Energy Storage World Forum has issued a whitepaper discussing four key areas affecting the energy storage market.
The forum recommends:
- Opening up markets to energy storage, increasing revenue certainty and reducing cost. Energy storage can offer a number of applications to the power system. Markets and regulations therefore need to open up to storage, while the industry continues its focus on cost reductions.
- Continuing to build trust from traditional lenders and increasing the bankability of storage projects. A key focus here is increasing the length of warranties, developing appropriate codes, standards and regulations (CSR) and defining the role EPCs can play by providing integrated solutions and ‘fully wrapped’ warranties.
- Unlocking new geographic markets for battery storage. The large majority of battery projects are found in a handful of countries. Overcoming barriers to deployment in these markets, such as a lack of access to finance, can pave the way for markets with vast deployment potential.
- Developing the C&I market segment. The C&I market segment is only recently being explored by project developers and constitutes a significant growth opportunity. Key factors such as increasing energy bills and price volatility could drive market growth going forward. Developing hybrid storage systems with the ability to respond to a wide variety of needs is also a key for unlocking future C&I growth.
According to the paper, the development of energy storage technologies and their adoption has grown significantly over the past years.
The majority of the investments made in the sector have been directed towards the lithium-ion batteries segment. This has resulted in cost decreases of lithium batteries over the past decade.
Investments in battery technologies are supported by market regulation, increasing efforts to reduce system costs, increased access to finance and growing interests by utilities to modernise ageing infrastructure using renewable energy and battery storage systems.
Despite recording an increase in investments, the battery storage segment represents a small portion of the energy storage market.
However, Navigant Research forecasts the capacity of grid-scale batteries to reach 14GW by 2022.
Other sectors such as electromechanical storage have also recorded significant growth. The segment has reached approximately 1GW from a few hundred years a few years back.
Download the paper here…