Global grid-connected energy storage capacity will surge to 21 GWh by 2025
LONDON – The global energy storage market is expected to double, from 1.4 GWh added in 2015, to 2.9 GWh this year, offering unique growth prospects for many energy companies as global energy markets continue to cool, according to IHS Markit.
“The United States and Japan are leading the way, but we’re also seeing activity in South Africa, Kenya, the Phillippines and other countries, as the cost of batteries continues to decline,” said Boust.
According to the IHS Markit, Japan and the US will be the largest energy storage markets, generating a third of market revenues totaling $50 billion over the next decade.
In Australia and Japan, energy storage penetration is expected to exceed 5 per cent of installed power capacity in 2025, underscoring the growing role that energy storage will play in grid stability, renewable integration and overall energy management.
Half of all energy storage installations will occur behind the meter, driven by self-consumption and back-up needs.
Eight countries will each have cumulative behind-the-meter storage power exceeding 1 GWh, including Japan, China and the US.
“Looking ahead to the future, half of all energy storage will come from households and businesses seeking to control their energy consumption, which will massively disrupt the traditional business models from established utilities and large equipment manufacturers,” Boust said.