The market for grid-connected energy storage will defy the “headwinds” caused by the coronavirus pandemic on industries across the world, analysis firm IHS Markit has predicted.
The team at the IHS Markit Energy Storage Service has forecast that global installations will grow by over 5GW this year, despite disruption caused by COVID-19. Battery energy storage is becoming increasingly able to competitively provide critical capacity to energy networks, the analysts said, particularly in the US, which is currently the world’s biggest market for grid battery storage.
After what was a relatively low level of installations in 2019 of 2.7GW, the rebound that began with a strong first quarter of 2020 will continue on, IHS Markit believes, with annual installations set to rise fivefold between 2019 and 2025.
While installation figures could reach 15.1GW / 47.8GWh, hardware revenues will increase from US$4.2 billion this year to US$9.5 billion in 2025. At the same time, battery module prices are expected to fall around 32% in those years.
“The increasing competitiveness and critical role of battery energy storage assets in supporting the decarbonisation and resilience of the electricity system means that opportunities for energy storage continue to develop despite the turmoil caused by the COVID-19 pandemic,” IHS Markit Energy Storage Service research manager Julian Jansen said.
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