IHS Markit: 40% of Energy Storage Pipeline is Co-Located with Solar PV

on April 18, 2018

Energy-Storage-NewsAs much as 40% of grid-connected battery storage projects that have been announced worldwide propose co-location with solar PV, from a pipeline of more than 10GW, analysts at IHS Markit have said.

The research firm has just published its analysis of the global battery storage market in 2017, extending into the first quarter of this year. It found that the “global utility-side-of-the-meter pipeline” increased by 2.9GW in Q1 2018 alone, from 7.5GW at the end of 2017 to 10.4GW today. It’s important to note that the pipeline is collated from announced, not completed, projects.

The company is forecasting the deployment of some 3GW this year around the world, a jump up from 1.9GW of global deployments that IHS tracked in 2017. Among the findings was that 40% of the utility-side-of-the-meter (known also as front-of-meter) pipeline consists of solar-plus-storage projects, co-locating batteries with solar.

“We’re not predicting that in the future that’s what 40% of all projects will be, but 40% of the announced pipeline that we’re tracking, is [solar-plus-storage],” Sam Wilkinson, associate director for solar and energy storage research at IHS Markit, told Energy-Storage.News.

“It’s mostly driven by a number of very large project announcements in Australia and the USA. In Australia in particular, there have been a huge number of solar projects that have announced they will add storage at a later date. Some of them are very clearly going to be installed this year, some of them have a much lower, what we would call ‘confidence rate’, that they’ll actually add storage at all. It might be that they’re waiting for a policy change or new business models to evolve,” Wilkinson said.

Co-location can also mean various things. At its most basic level, solar farm owners might take advantage of an existing grid connection to look at installing a battery on the same network, but the batteries and solar might behave entirely independently of one another. Conversely, it can mean the battery system is charging from the solar panels directly and could provide services to the solar farm, such as storing the energy for later use or helping the PV plant to ramp up to meet grid demand. The former would use longer durations, more megawatt-hours of energy, the latter would use shorter durations and respond quickly. Wilkinson pointed out that there does appear to be a trend forming towards that longer duration use for ‘solar firming’ with batteries.

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Fractal Energy Storage ConsultantsIHS Markit: 40% of Energy Storage Pipeline is Co-Located with Solar PV