“Increasing investments towards renewable energy projects and reducing cost of grid-scale batteries will boost the market”
The global grid-scale battery market is growing competently, expected to grow at a CAGR of 20.0% during the estimated period from 2023 to 2030, starting from US$ 3.55 Bn in 2021.
Grid-scale battery storage systems will play a vital role in aiding the next stage energy transition towards renewable systems. The battery storage systems offer grid services like regulation reserves, frequency response, and ramp rate control. In addition, the grid-scale battery storage systems can facilitate greater dissemination of excess generated variable renewable energy into the grid. Furthermore, batteries provide cheaper and reliable electricity in off-grid and isolated grids, thereby driving the demand for grid-scale batteries in the upcoming years.
Rapid growth in the production of renewable energy, push from the government to reduce global warming, large-scale addition of solar and wind projects, increasing transition towards low carbon electricity, and global demand for electric vehicles & consumer electronics expected to expand the market for grid-scale battery over the forecast period. For instance, according to World Energy Council (WEC) around 250 GW of energy storage is projected to get installed by 2030, owing to the growth rate for energy storage, supportive government policies, and the declining price of batteries. Additionally, the energy storage technology acts as a contributory tool in handling grid resiliency and reliability by regulating variable generation and improving smart-grid and micro-grid functionality.
“Reducing cost in Li-ion technology coupled with implementation of large-scale battery storage, accounts Li-ion batteries to hold a higher revenue share across the market”
Li-ion batteries are projected to hold the largest share in storage capacity additions, owing to the decreasing costs in Li-ion technology, government policies, and growing production of renewable energy to meet the rising demand for electric vehicles. For instance, in 2018, according to International Energy Agency (IEA), the Li-ion accounted for around 90% of large-scale battery storage additions. Furthermore, the integration of renewable energy with a conventional grid system increased the demand for grid-scale battery storage systems globally. For instance, Acciona Energia, a Spanish conglomerate group has integrated a Li-ion battery storage system with a wind farm in Barasoain, Spain.
The development of energy storage markets through regulatory reforms, subsequent reduce costs of Li-ion batteries through efficiencies of scale, and increased competition to drive the market growth. For instance, around 130 MWh of battery storage systems have been implemented in Hawaii, owing to provide a smooth services for wind and solar PV systems in the grid services.
“Dominance is led by the government policies and initiatives for large scale battery storage projects.”
The provision of incentives by the American Recovery and Reinvestment Act of 2009, in the United States, has opened a new cradle of financing for large-scale battery storage to various owners. Around 124 grid-scale energy storage projects were commissioned from 2009 to 2014, which includes ancillary services, battery storage for utility load shifting, and distributed storage for grid support. For instance, in November 2018, PG&E awarded for two largest battery contracts i.e. 182MW / 730MWh and 300MW / 2 270MWh in California.
Moreover, in 2017, San Diego Gas & Electric a utility company developed a project of 30 MW / 120 MWh Li-Ion battery storage to collection surplus power production in Escondido, U.S. The aforementioned developments for battery storage in the U.S. created an opportunity for the growth of grid-scale battery market over the forecast period. Increasing the use of renewable energy in the commercial and residential sectors, the initial measures to lead the utility-scale policy, and storage development are associated factors for the growth of the market. Furthermore, the development of new technologies in wind and solar energy is eventually facilitating the growth of the grid-scale battery market across the region.
List of Companies Covered:
Key Industry Development:
Historical & Forecast Period
This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.
The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Research Methodology
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Grid-Scale Battery market are as follows:
Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.
| ATTRIBUTE | DETAILS |
|---|---|
| Research Period | 2022-2032 |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Year | 2022 |
| Unit | USD Million |
| Segmentation | |
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Application
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Region Segment (2022-2032; US$ Million)
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Key questions answered in this report
