Large-scale energy storage supports greater adoption of renewable energy sources and is set for strong growth over the next decade, according to a new report from Navigant Research.
Utility-Scale Energy Storage Overview says that in 2019, global new capacity additions of utility-scale energy storage are expected to reach 1,557.0 MW. This figure is projected to grow at a compound annual rate of 34.8% to reach 22,909.2 MW of new capacity deployed in 2028.
The technology is becoming competitive with conventional power grid systems and, while the industry remains diverse, repeating trends are surfacing in the early adopter markets that have grown and become more mature, Navigant Research said.
“A key trend seen around the world is that the early stages of a market’s development typically include projects that are smaller and focused on single applications, often grid stability services such as frequency regulation,” explained Alex Eller, senior research analyst at Navigant Research. “As markets mature, such as the US, Germany and Australia, new projects tend to shift to target more substantial multi-revenue stream opportunities for capacity and reserve services, including combined renewables plus storage plants.”
Globally, solar plus storage accounts for a large percentage of newly announced energy storage capacity, including some of the biggest projects being built. The report found that standardisation among these new solar plus storage projects has been key to driving their growth, both in terms of technical designs and contract structures through combined power purchase agreements (PPAs).
Navigant Research also noted that, although lithium ion (Li-ion) battery technology leads the growing market, innovations in long duration technologies such as flow batteries, compressed air, and pumped hydro storage (PHS) are likely to play an important role over the coming decade.