Energy Storage Systems (ESS) Market Outlook to 2028

Energy storage systems provide a wide array of technological approaches to managing our power supply to create a more resilient energy infrastructure and bring cost savings to utilities and consumers.

Drivers:

Increasing intermittency of variable renewable energy sources such as wind and solar

In the energy sector, wind and solar PV power generation technologies have spread globally rapidly. The International Renewable Energy Agency's (IRENA) renewable power generation costs 2021 report states that more than half of the renewable capacity added in 2021 achieved lower power costs than the cheapest new coal plant.

Innovation and low-cost finance have brought down the costs of solar PV and wind, and they are now the most economical source of electricity in most markets. But due to its unreliable nature, the power generated is stored in batteries or others to utilize generated energy when needed.

Some of the Other Drivers:

• Increase in the number of grid stability ESS projects that provide ancillary services
• Increasing demand for uninterrupted power supply
• Growing energy intensive industries such as data centers and others
• Solar plus storage is becoming increasingly popular in the residential market
• Time-shifting avoids high tariffs on electricity by utilizing stored energy at times of the day when electricity use is at its highest

Energy Storage System (ESS) is a device or group of devices assembled to convert the electrical or thermal energy from power systems and store energy to supply electrical energy at a later time when needed.

Several methods or technologies store energy, such as mechanical, electrochemical, chemical, and thermal.

Mechanical Energy Storage Systems:

• Mechanical energy storage systems are the storage of energy by applying force to an appropriate medium to deliver acceleration, compression, or displacement (against gravity); the process can be reversed to recover the stored kinetic or potential energy
• They are different types of mechanical energy storage systems:
• Pumped Hydro Storage (PHS)
• Compressed Air Energy Storage (CAES)
• Flywheel
• Liquid Air Energy Storage (LAES)
• Pumped Heat Electrical Storage (PHES)
• Adiabatic Compressed Air Energy Storage (ACAES)
• Liquid Air Energy Storage (LAES)

Electrochemical or Battery Energy Storage Systems:

Electrochemical energy storage systems are defined as - the storage of energy by converting electrical energy into chemical energy; the process can be reversed by converting chemical energy into electrical energy

They are different types of electrochemical energy storage systems:

• Lead acid Batteries
• Lithium-ion Batteries
• Redox Flow Batteries

Thermal Energy Storage Systems:

Thermal energy storage systems are the technology that allows the transfer and storage of heat energy or energy from ice or cold air, or water. This method is built into new technologies that complement energy solutions such as solar and hydro

They are different types of thermal energy storage systems:

• Molten Salt TESS
• Phase Change Material

Chemical Energy Storage:

• Chemical energy storage systems are defined as - Energy stored in chemical fuels that can be readily converted to mechanical, thermal, or electrical energy for industrial and grid applications
• They are different types of chemical energy storage systems:
• Power to Hydrogen gas
• Power to Methane gas

Energy Storage Systems in Utilities:

The power generation sector is moving away from coal (a fossil fuel with high carbon density) and adopting renewable power plants to reduce carbon footprint, which helps countries across the region to meet their Net Zero targets of 2050.

Utility-scale energy storage systems can enable a greater feed-in of renewables into the grid by storing excess generation and firming renewable energy output. On the other hand, increasing renewable energy generation by supporting energy storage helps reduce electricity prices and different transmission systems.

Energy Storage Systems in Industrial:

Energy Storage Systems is expected to decarbonize the world, including the industrial sector, significantly. Energy-intensive industries such as iron, steel, paper, pharmaceuticals, fertilizers, and chemicals are increasingly adopting thermal energy storage systems in their attempt to reduce pollution and meet the targets set by regulatory bodies.

Energy Storage Systems in Residential:

Renewable Energy Storage System is one of the niche markets within the Energy Storage Systems with a high growth potential due to feed-in tariff policies and also to increase the reliability of electricity. Residential ESS networks generally work with photovoltaic systems, where DC voltages are not that high and usually not superior to 500V DC.

Energy Storage Systems Trends:

Rising Interest in transmission and distribution deferral systems:

Power transmission companies worldwide are considering energy storage technology to defer or replace transmission system upgrades. Energy storage is placed along a transmission line and operated to inject or absorb the power, mimicking transmission line flows.

Some of the Energy Storage System trends:

• The growing use of solid-state batteries in residential energy storage systems
• The increasing number of partnerships for large-scale hydrogen projects
• The growing number of P2G projects

Energy Storage Systems Opportunities:

• Increasing demand for EV charging stations
• The market growth in Germany, France, Italy, Spain, the United Kingdom, and Greece can be attributed to the increasing renewable energy generation and grid stability

Energy Storage System Restraints:

• Increasing the fuel cell market will decrease the demand for ESS
• High Capital Expenditure is required for the installation of energy storage systems

Regional Market Analysis

The global Energy Storage Systems market report is segmented based on geography into North America, including the United States, Canada, Mexico, and the Rest of North America; Europe, including Germany, France, United Kingdom (UK), Italy, Russia, and the Rest of Europe; Asia Pacific (APAC) including China, India, Japan, South Korea, Australia, Indonesia, and Rest of APAC; South America including Brazil and Rest of South America; and the Middle East and Africa including Saudi Arabia, Brazil, Nigeria, South Africa, and other countries.

Asia-Pacific is expected to be the leading region in the Battery Energy Storage market during the forecast period, followed by North America, Europe, the Middle East, and South America.

China, India, Japan, and South Korea are the major countries in Asia-Pacific with Battery Energy Storage Systems and a strong order book.

Asia Pacific:

The Asia Pacific region has countries that have both developing and established energy storage systems markets. For instance, countries such as China, India, South Korea, Japan, Australia, and others have an established large-scale ESS market, while Indonesia, Pakistan, and Bangladesh are developing their large-scale ESS market.

The Asia Pacific is expected to be the largest region for energy storage systems during the forecast period. With a target to reduce emissions, energy storage systems demand will rise in the power generation sector, especially in China, Japan, India, and other Southeast Asia such as Thailand, the Philippines, Indonesia, and Malaysia.

The publisher's Energy Storage Systems Market report provides insights into the current market demand environment and prognosis.

The study offers a thorough examination of the many factors that impact the development of Energy Storage Systems. The study also comprehensively analyses the Energy Storage Systems by segmenting it based on region (Asia Pacific, North America, Europe, South America, Middle East, Africa), based on technology (Mechanical,Thermal, Electro Chemical and others ) and by end-use (Residential, and Non-residential).

The report also discusses current and future market possibilities, market trends, advancements, the effect of Covid-19 and the Ukraine and Russian War on the Energy Storage Systems, essential developments, regions, and segments poised for the fastest growing competitive landscape. Further, the Energy Storage Systems market size, and demand forecast, growth rates will also be provided in the report.


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