Grid Scale Battery Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, 2018-2028 Segmented By Battery Type (Lead-acid, Sodium-based, Redox Flow, Lithium-ion, and Others), By Ownership (Third-party Owned, Utility Owned), By Application (Renewables, Peak Shifting, Ancillary Services, Backup Power, and Others), By Region and Competition
Published Date: December - 2024 | Publisher: MIR | No of Pages: 320 | Industry: Power | Format: Report available in PDF / Excel Format
View Details Buy Now 2890 Download Sample Ask for Discount Request CustomizationGrid Scale Battery Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, 2018-2028 Segmented By Battery Type (Lead-acid, Sodium-based, Redox Flow, Lithium-ion, and Others), By Ownership (Third-party Owned, Utility Owned), By Application (Renewables, Peak Shifting, Ancillary Services, Backup Power, and Others), By Region and Competition
| Forecast Period | 2024-2028 |
| Market Size (2022) | USD 3.35 Billion |
| CAGR (2023-2028) | 21.08% |
| Fastest Growing Segment | Utility Owned |
| Largest Market | North America |
Global grid scale battery market is expected to grow at a robust pace in the forecast period 2024-2028.
Grid-scale batteries, also known as large-scale energy storage, is a technology that allows utilities and grid operators to store energy for later use. An electrochemical device called a battery energy storage system (BESS) charges (or gathers) energy from a power plant or a grid. When electricity or other grid services are required, it then releases that energy.
Electrical energy is stored during periods of high supply and low cost (especially from intermittent power sources like renewable electricity from wind, tidal, and solar power) or low demand, and then released back into the grid during periods of low supply and generally higher cost of electricity.
Moreover, by storing any extra generated energy and smoothing the energy output through a process known as capacity firming, utility-scale battery storage devices can permit higher penetration of fluctuating renewable energy into the grid. Battery storage solutions, when used in conjunction with renewable energy generators like wind, hydro, or solar (PV), can unleash the full potential of renewable energy by delivering more dependable and significantly less expensive electricity in remote grids and off-grid communities that would otherwise have to rely on costly imported diesel for their electricity generation. The rise of the grid-scale battery business is being driven by the move towards renewable energy.
The utilization of technology significantly contributes to time and resource efficiency. Renewable energy sources such as solar and wind power enable the production, storage, and consumption of electricity. By integrating the Internet of Things (IoT) with energy-saving equipment, electricity providers can reduce costs and minimize their environmental impact. They gain a deeper understanding of energy usage through IoT device data, which can be leveraged for load balancing, demand forecasting, and strategic planning. Energy storage solutions also offer backup power during unexpected grid interruptions, ensuring uninterrupted operations.
Increase in Renewable Energy Production Supporting the Growth of the Global Grid-Scale Battery Market
Battery Energy Storage System (BESS) has been able to play a significant role in the energy industry due to the rise in the demand for system flexibility and the quick decline in the cost of battery technology. Energy storage system is being adopted by several regulators, utilities, and policymakers, which is fostering the expansion of the grid-scale battery market.
The demand for grid-scale batteries is anticipated to increase over the next several years because of the depletion of fossil fuels and the accelerated adoption of government legislation to promote renewable energy. Through power equipment, microgrids are connected to power produced by renewable sources. Later, this energy is made found at to buildings, commercial spaces, and electrical grid locations.
For instance, according to International Energy Agency (IEA), the demand for all other fuels declined in 2020 while renewable energy’s demand increased by 3%. The increased use of renewable energy is largely due to solar PVs and wind energy. In 2021, China alone was responsible for almost half of the increase in renewable electricity globally, with the U.S., the EU, and India following closely behind. As a result, the global grid-scale battery market is expected to rise due to the spike in the use of renewable energy.
Rise in Demand for Energy
Globally, energy demand has increased dramatically because of rapid industrialization and urbanization. Additionally, Asia-Pacific's high energy consumption is a result of rising infrastructure spending. According to the International Energy Agency (IEA), Asia Pacific's power demand rose from 2% in 2020 to about 8% in 2021. China and India, both saw a growth in energy demand of 10% in 2021.
Moreover, in areas with extra capacity for coal plants, natural gas is replacing coal for the generation of electricity. Due to rising gas prices and supply issues, many nations are working to cut back on its dependency on Russian gas supplies. With a rise in population and rapid industrial development, the world's energy consumption is shifting proportionally to developing economies. This is expected to drive the market growth of global grid-scale battery during the forecast period.
R&D in Grid-scale Energy Storage Technologies driving the market for Grid-scale Battery
Manufacturers are now creating improved power devices. Technologies for long-term energy storage are becoming more popular in the market. Mechanical energy storage and thermal energy storage are two more forms of storage technologies that are in significant demand in the market.
In the upcoming years, it is anticipated that grid-scale battery storage businesses would invest in technological breakthroughs. These improvements mainly consist of simulation and computing tools, which are used in the design stage to satisfy client needs and handle varied power system difficulties. The use of automated manufacturing techniques has increased as a means of producing high-quality storage systems faster. As a result, it is projected that this would open significant growth potential for industry participants.
Numerous benefits of energy storage include the integration of various resources and increased dependability and resilience. Grid-scale batteries also offer the benefit of arbitrage. Arbitrage involves recharging the battery during cheaper off-peak periods and charging it during more expensive peak periods. By taking advantage of the fluctuating daily electricity costs, this practice can generate income for the battery energy storage systems (BESS) operator. Moreover, the decrease of renewable energy curtailment is a further development of the energy arbitrage service. Utilizing as much affordable and emission-free renewable energy generation as possible is of importance to plant operators. However, the limited flexibility of conventional generators and timing differences between the supply of renewable energy and the demand for electricity might force renewable generators to throttle their output in systems with an increasing share of variable renewable energy (VRE) but, It turns out to be profitable for plant operators to charge the battery with inexpensive energy during periods of excess renewable generation and discharge it during periods of high demand.
Recent Developments
- The British government awarded USD13.7 million to
battery manufacturer, ‘Invinity Energy Systems’ in April 2023 to construct the
largest grid-scale battery storage constructed in the UK. Invinity's Vanadium
Flow Battery technology, which offers long-duration, non-degrading energy
storage and is perfect for the management of renewable energy systems, would be
used in the grid-scale battery storage project. Invinity claims that its
battery technology is nearly entirely recyclable and has a lifespan of more than
25 years. The 30 MWh system power battery system would be able to store enough
energy to run 2,500 households for more than two hours and deliver more than 7
MW of electricity on demand.
- The Australian Renewable Energy Agency (ARENA)
announced in December 2022 that it would conditionally fund 8 grid-scale
battery projects around Australia with USD176 million. Each battery that would
be purchased through ARENA's large scale battery storage funding round would be
fitted with grid-forming inverter technology. This makes it possible for them
to offer crucial system stability functions, which were formerly offered by
fossil fuels like coal and gas. These projects represent a tenfold increase in
grid-forming power storage capacity currently in use in the National power
Market (NEM), with a total project value of USD2.7 billion and a capacity of
2.0 GW/4.2 GWh.
Market Segmentation
The
Market Players
The main market players in the global grid scale battery market are
|
Attribute |
Details |
|
Base Year |
2022 |
|
Historic Data |
2018–
2022 |
|
Estimated Year |
2023 |
|
Forecast Period |
2024
– 2028 |
|
Quantitative Units |
Revenue in USD Million and CAGR for 2018-2022 and 2023-2028 |
|
Report Coverage |
Revenue
forecast, company share, growth factors, and trends |
|
Segments Covered |
Battery Type Ownership Application Region |
|
Regional Scope |
North
America, Asia-Pacific, Europe, South America, Middle East & Africa |
|
Country Scope |
United States, Canada, Mexico, China, India, Japan, South
Korea, Australia, Germany, United Kingdom, France, Italy, Spain, Brazil, Argentina,
Colombia, Saudi Arabia, South Africa, UAE |
|
Panasonic Corporation, LG Chem Ltd., Contemporary Amperex
Technology Co Ltd, Samsung SDI Co. Ltd., BYD Co Ltd, East Penn Manufacturing Company, GS Yuasa Corporation,
NGK Insulators, Ltd., Toshiba Corporation, Redflow Limited |
|
|
Customization Scope |
10% free report customization with purchase. Addition or
alteration to country, regional & segment scope. |
|
Pricing and Purchase Options |
Avail
customized purchase options to meet your exact research needs. Explore purchase options |
|
Delivery Format |
PDF and Excel through Email (We can also provide the editable
version of the report in PPT/Word format on special request) |
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