New York, Jan. 09, 2023 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Battery Energy Storage System Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)" - https://www.reportlinker.com/p06379258/?utm_source=GNW
Presently the market has reached pre-pandemic levels.
Key Highlights
Over the long term, factors such as declining prices of lithium-ion batteries and increased penetration of renewable energy are likely to drive the battery energy storage systems market in the forecast period.
On the other hand, demand-supply mismatch of raw materials like cobalt, lithium, copper, etc, are likely to hinder the growth of the BESS market in the studied period.
Nevertheless, technological advancements in new battery technologies to store energy are likely to create lucrative growth opportunities for the BESS market during the forecast period.
Asia-Pacific is the fastest-growing market during the forecast period due to the rising energy demand. This growth is attributed to increasing investments, coupled with supportive government policies in the countries of this region, including India, China, and Australia
Key Market Trends
Residential Expected to be the Fastest-growing Segment
In the recent past, the energy storage system (ESS) experienced significant growth, especially in the residential sector, along with the rising investments in renewable energy infrastructure across the regions.
Electricity consumption in residential buildings is estimated to increase during the forecast period due to increasing annual disposable incomes and the rising work from home trend across the world. Energy storage systems are used for continuous power supply at homes during power outages at peak hours.
Furthermore, various incentive programs initiated by several governments across the world are in place to support the residential energy storage market. For instance, California’s Self-Generation Incentive Program (SGIP) primarily supports the residential storage sector, and the program offers incentives to new and existing distributed energy resources.
Moreover, the residential energy storage segment is likely to proliferate because of increasing technological advancements in energy storage technology, which is leading to a decline in battery prices and widespread deployment of renewable power sources.
Also, governments across the globe are investing in grid supported battery storage systems. In 2021, global investments in grid battery storage were estimated at roughly 4.7 billion USD, an increase of 34% in comparison to the previous year.
Market players like Harmony Energy Income Trust, an investment firm, announced in November 2022 that its Pillswood project in Yorkshire, UK, had gone live four months earlier than planned. According to Harmony, the 98MW/196MWh facility is Europe’s largest BESS project by MWh. This is enough to power approximately 300,000 UK homes for two hours. The project will provide balancing services to the UK electricity grid network using a Tesla two-hour Megapack. Harmony Energy developed the project, with Tesla overseeing construction. Autobidder, Tesla’s algorithmic trading platform, will manage the project.?
In June 2021, Q CELLS partnered with eStat Inc., a clean energy solutions provider in the residential energy sector, to expand its presence in the Hawaiian residential energy market. eStat’s cloud-based energy optimization and management technology allow homeowners to build a sustainable Zero Carbon Smart Home that achieves NEM-equivalent savings in Hawaii.
Therefore, owing to the above points, the residential application is expected to create lucrative demand in the battery energy storage systems market during the forecast period.
Asia-Pacific Expected to Dominate the Market
The Asia-Pacific region consists of two main types of power grids, each with different characteristics and opportunities for energy storage systems. On the one side are highly developed countries, such as Japan and South Korea, with advanced grids that operate reliably and utilize advanced technologies. On the other side, there are nations that are still developing and have unreliable or limited power grids.
The developing regions are also witnessing rapid population growth and urbanization, which is increasing the demand for electricity. Renewable energy is becoming increasingly cost-effective, and developing countries are expected to include huge amounts of renewable energy into their grid. Also, many areas are expected to adopt a more distributed approach to grid development, using more local power generation and microgrid systems and thereby creating a potential for growth of the battery energy storage system market in the region.
China’s residential energy storage market is expected to grow on the back of government support and policies. It has shown its ability to stimulate high growth in domestic demand for solar-related equipment through subsidies and installation targets.
Australia is undergoing an energy transformation, which is expected to intensify over the coming decades. The transformation includes a greater reliance on renewable energy in response to climate mitigation policies.
In January 2022, Woodside Energy submitted a proposal for a 500 MW solar facility and a 400 MWh of battery storage to the Western Australian Environmental Protection Authority. The facility would cover approximately 975.6 hectares within a development envelope of 1,100.3 hectares. According to the proposal, the solar facility will see the installation of approximately 1 million solar panels, along with supporting infrastructures such as a battery energy storage system and an electrical substation. ?
Renewable energy is becoming increasingly cost-effective, and developing countries are expected to include huge amounts of renewable energy into their grid. Also, many areas are expected to adopt a more distributed approach to grid development, using more local power generation and microgrid systems.
Therefore, owing to the above points, Asia-Pacific is expected to dominate the market during the forecast period.
Competitive Landscape
The battery energy storage system market is fragmented. Some of the major players in the market (in no particular order) are BYD Company Limited, Panasonic Corporation, LG Energy Solution Ltd, and Contemporary Amperex Technology Co. Limited.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
Read the full report: https://www.reportlinker.com/p06379258/?utm_source=GNW
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