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Stationary Battery Energy Storage Creates a $13.5 Billion Opportunity by 2023

Tesla Motors revealed information about its new product,a home battery, Powerwall, that charges using electricity generated from solar panels, or from the grid when utility rates are low, and powers your home in the evening.

This announcement is another big step forward the large-scale deployment of stationary battery systems, said Dr. Milan Rosina, senior analyst, Energy Conversion & Emerging Materials, Yole Dveloppement. Indeed energy storage is playing a major role in the energy transition currently underway, he adds.

The More than Moore market research and strategy consulting company,Yole Dveloppement (Yole),released last week its new technology & market analysis entitledEnergy Management for Smart Grid, Cities and Building: Opportunities for Battery Electricity Storage Solutions.In this new report, Yoles analysts propose a detailed analysis of the stationary battery market and an overview of the main players.

yoleDecentralization of electricity sources has become possible because of improving technologies and falling costs for renewable energy installations and energy storage solutions. Decentralization and increased deployment of renewable sources have sustainable drivers: access to clean energy, CO2 emission reduction, nuclear hazard reduction, energy independence, clean mobility, and local energy production to decrease transmission and distribution losses.Traditional business models based on centralized energy supply are becoming obsolete. New energy management solutions and business models have to be developed.

The growing market share of intermittent renewable energies (wind, photovoltaics) in electricity generation reveals a strong interest in stationary battery energy storage systems,said Dr. Rosina.Recent cases in China, Japan and some European countries have shown that the further deployment of renewable energy sources in many areas of the world will require electricity grid upgrades, larger deployment of suitable energy storage systems, and development of suitable energy management solutions.

The market for stationary battery energy storage systems will have strong growth in the future, surpassing $13.5 billion by 2023. This market is driven both by suppliers’ development of better performing and less costly battery solutions and by consumers’ growing demand for lower energy dependence, greater availability of renewable electricity, and the need for electricity grid stabilization.

Battery solutions are particularly attractive for use in buildings having both solar and electricity storage, especially residential buildings; excess photovoltaic electricity can be stored in batteries, then cheap energy can be drawn from the sun or battery during the day when electricity rates are high, and during the night power can be drawn from the grid at low overnight rates. Excess locally generated electricity can also be sold to the utility.

The value chains associated with the management of energy flow (generation, transmission, distribution, storage and consumption) offer opportunities for numerous players from various industries. Based on safe and reliable cells purchased from the established suppliers, many players are currently entering the market as battery integratorsdesigning and manufacturing battery systems, especially for applications in transport and stationary energy storage (residential and large-size battery energy storage systems (BESS).

Automotive makers (Tesla, BYD, Toyota, Nissan), their suppliers, and partners are also entering the residential or large-size BESS markets. They profit from the advantage of purchasing battery cells in high quantities and thus at lower prices compared to stationary storage pure-players. According to Yoles analysis, a strong consolidation, new partnerships, and M&A activities will strongly shape the stationary storage market over the next several years.

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