May 2, 2019: Global storage markets grow 140% in a year: Global energy storage markets will expand by 13 times by 2024, according to a report released on April 9 by market analysts Wood Mackenzie Power & Renewables — and much of the growth is coming from the worldwide shift to a decarbonized power supply.
The report, Global energy storage outlook 2019: 2018 year-in-review and outlook to 2024, says there was 140% growth in 2018 in terms of year-on-year capacity growth, with 3.3GW/6GWh deployed globally.
“Half of this GW capacity was front-of-the-meter, driven by accessible ancillary service revenues in key markets,” the report says. “There was also a notable trend for solar-plus-storage projects providing semi-dispatchable renewable capacity.
“In terms of residential storage, state incentives, reduction in solar export tariffs and the need for back-up all facilitated storage deployment. With or without a subsidy, consumers are willing to pay a premium to increase their use of rooftop solar power and, in the process, mitigate the risk of electricity bill increases.”
The report says the non-residential segment overtook the residential segment for the first time, despite being the most complicated proposition in markets where it would take longer to de-risk, attract financing and become scalable.
“From 2013 to 2018 we saw fledgling market growth, which was reflected in a global GWh compound annual growth rate of 74%, although we did observe relatively small deployment totals of 7GW/12GWh for the period,” said Ravi Manghani, director, energy storage at Wood Mackenzie Power and Renewables.
“Nevertheless, these developments have shifted the minds of global regulators, policy makers, grid operators, asset operators and developers, in terms of how energy systems can be balanced.
“Market structures have generally struggled to keep up with the pace of this technology, illustrated by the limited number of revenue streams available to appropriately compensate storage.
“More than half of the GWh during this period came online in 2018 alone, beckoning an inflection in storage demand.”