Through 2029, Asia Pacific is expected to be the largest market overall with a cumulative 60,747.4MW of new utility-scale energy storage capacity, representing a compound annual growth rate of 39.4%.
According to a new report released by Guidehouse Insights, falling battery prices have made utility-scale energy storage projects cost-competitive with fossil fuel generation and other technologies for numerous applications including peak generation capacity and frequency regulation.
However, the most substantial shift has been the improving economics of combined solar-plus-storage projects which are now cheaper than natural gas generation in many countries and account for a large and growing portion of the global utility-scale energy storage market.
Utility-scale energy storage is now considered a key component of new power system planning efforts in countries around the world. This represents a major shift from just 2 years ago when the technology was still largely considered too expensive or complex for integration into energy markets.
Pritil Gunjan, senior research analyst with Guidehouse Insights, said: “UES is a multifaceted technology capable of providing a range of grid services and improving overall power system efficiency.
“Although the technology can provide operational cost savings for any power system, the single most important driver for the market’s growth is the increasing penetration of variable renewable power generation, notably solar and wind.”
Learn more about the report.