While the global market was under the haze of the epidemic and many countries were still in lockdown, the energy storage market showed extremely strong resilience and began to recover and grow since Q3 and Q4 of 2020. According to the BloombergNEF report, the global energy storage market in 2020 has developed faster than expected, and the annual newly installed capacity reached 5.3GW/10.7GWh, which was significantly higher than the 3.4GW/6.8GWh in 2019 (57% annual growth). The top 5 markets are the United States, Europe, China, South Korea and Australia, and the main segment is Utility-scale projects. According to forecasts, the newly installed capacity of energy storage is expected to take a big leap in 2021, reaching 9.7GW/19.9GWh. (86% growth).
Storage cost rapidly reduce & Lithium battery leading the market
At the same time, the cost of energy storage has rapidly reduced. From 2010 to 2020, the global lithium battery price dropped by an average of 87%, reaching $137/kWh. Hardware cost like PCS and software costs like financing and project developing costs also decreased year by year. From the analysis of energy storage technology, Lithium batteries are leading the market. NMC, NCA & LFP take more than 98% share. (Source: Wood Mackenzie). From the perspective of installed energy storage capacity, LFP has gradually increased its market share from 2018 because of its high safety, low cost, and long cycle life. And these are exactly the key requirements for energy storage batteries. According to Wood Mackenzie’s forecast, LFP will continue to grow in the next 10 years, and take the major market share of lithium.
Opportunity: Large-scale deployment of energy storage has become reality
In the past few years, due to uncertainty of the business models, high cost of the battery, PCS and project financing, low- and uncertain-income revenues, project financing difficulty and other reasons, the development of energy storage has been restricted. But as the cost of battery systems continue to decrease, optimization of ESS market polices and regulations continue, and maturity of the business models, large-scale deployment of energy storage has become reality.
Carbon Neutral by 2050 and 2060
With the proposal of the climate-neutral global targets, each country has set the goal of net-zero carbon emissions. At the United Nations General Assembly on September 22, 2020, Chinese President Xi Jinping announced that: “China will increase its nationally determined contributions, adopt more powerful policies and measures, strive to reach the peak of carbon dioxide emissions by 2030, and strive to achieve carbon neutrality by 2060.” In this context, energy transition is the only way for all economies.
Narada Project References
As an expert in the field of energy storage, Narada Energy Network has successfully provided hundreds of energy storage solutions to 37 countries around the world, including the following examples.
Germany – PCR BESS Project（3*15MW/25MWh）
- Participate in German PCR(Primary Control Reserve) market
Italy – Thermal Power Plant AGC Frequency Regulation（2*11MW/11MWh）
- This BESS system access to the thermal plant for Frequency response application in Italy, Narada provide containerized solution
- Narada LFP Battery system have been widely deployed in China South America, Ireland, India and other county, providing frequency regulation service to the grid
U.S. – Solar + Storage（40MW/55MWh）
- Narada first large scale solar + storage LFP BESS move to COD at Q1 2021
- Hundreds of MWh RE + storage projects are under delivery and construction
Contributed by: Narada Power
If you want to know more about this and other topics directly from end users of energy storage technologies join us at one of these annual events: The Energy Storage World Forum (Grid Scale Applications), or The Residential Energy Storage Forum, or one of our Training Courses.