North America is currently leading the world for utility-scale energy storage deployments, but could be overtaken by the second-largest market, the Asia-Pacific region, as early as 2023, according to forecasting and analysis by Guidehouse Insights.
The Colorado-headquartered research company recently published its Q3 2020 ‘Utility-scale energy storage market update’, which examines market drivers, trends and forecasts for the large-scale energy storage industry worldwide through to 2029.
Only a couple of years ago, utility-scale energy storage was considered “too expensive or complex for integration into energy markets” in many parts of the world, but since then there has been a “major shift”, Guidehouse analysts said. Guidehouse expects annual installed utility-scale storage power capacity to be in the region of 25,000MW globally by 2029, and more than 5,000MW next year, more than doubling this year’s figures.
While renewable energy integration remains, and is expected to continue to be, the strongest driver of that growth, energy storage can help and reduce costs associated with many different aspects of the power system, according to Guidehouse.
“Developed markets with growing storage industries have shown that once energy storage becomes a component of utility planning, cost-effective opportunities to use the technology will present themselves,” report authors Pritil Gunjan, Ricardo Rodriguez and Maria Chavez told Energy-Storage.news.
“In the US, the mandated inclusion of energy storage alongside other assets in utility integrated resource planning (IRP) processes quickly led to the identification of new project opportunities. This trend will replicate itself in emerging markets throughout the world once a sufficient level of understanding has been achieved.”
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