Energy Storage: Global grid-connected capacity to double in 2016 and surge 21 GWh by 2025 IHS says
Global grid-connected energy storage capacity will surge to 21 GWh by 2025, according to IHS Markit. Over the next decade, Lithium-ion (Li-ion) batteries will become the mainstream energy-storage technology, and more than 80 percent of global energy storage installations will include the technology by 2025.
Strong interest from different players
“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,” said Marianne Boust, principal analyst, IHS Markit. “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.”
$50 billion market revenues
According to the IHS Markit Grid-Connected Energy Storage Forecast Database, Japan and the United States will be the largest energy storage markets, generating a third of market revenues totaling $50 billion over the next decade. In Australia and Japan, energy storage penetration is expected to exceed 5 percent of installed power capacity in 2025, underscoring the growing role that energy storage will play in grid stability, renewable integration and overall energy management.
Driving factors self-consumption and back-up needs
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 1 GWh, including Japan, China and the United States. “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,” Boust said.
With the current numbers IHS raised its previous forecast about the energy storage market growth. GTM Research also predicts a strong market growth for the German market. (HCN)