2020 to be a record year for energy storage despite Covid-19 says WoodMac

2020 to be a record year for energy storage despite Covid-19 says WoodMac

2020 to be a record year for energy storage despite Covid-19 says WoodMac 150 150 Energy Storage Journal

April 2, 2020: The research group Wood Mackenzie has predicted the Covid-19 outbreak will shave 19% off its earlier forecast for energy storage deployments in 2020, the consultancy reported on April 1.

Although this equates to a 3GWh reduction over the year, 2020 should still break records for deployment, with 12.6GWh going ahead, the group said.

Last year growth in the energy storage market contracted for the first time, falling from 6.2GWh in 2018 to 5.3GWh in 2019, primarily because of market declines in South Korea, China, the UK and Canada, WoodMac says.

“It did not take long before cracks appeared in South Korea’s unbelievable 2018 market growth,” said senior research analyst Le Xu.

“Since breaking the market record for most storage deployed in a single year, 28 fire incidents were reported, pulling this bull market into a 70% year-over-year decline. 2019 saw over 1GWh in annual deployment reductions — enough to put a generally slow year into the red in growth terms.”

Le Xu said that risky revenue streams and a lack of revenue options had hit deployments in China, the UK and Canada.

The next five years, however, should see a thriving global energy storage sector, and WoodMac predicts it will grow 13-fold to 230GWh by 2025.

The trend to watch, it says, is hybrid energy storage.

“One third of all storage deployed in 2019 was part of a hybrid system,” said principal analyst Rory McCarthy. “Although deployments of wind-paired projects were negligible in 2018, they tied with solar in 2019. In 2018 and 2019, we began to see a more commercially viable hybrid storage market take off.

“Solar-paired storage was the clear winner in 2018, with 582MWh deployed against wind-paired at 57MWh. However, in 2019 these two technologies were deployed in equal amounts (227MWh).

“We expect solar-paired storage to take over in the coming years, as decision-makers overseeing policy and procurement processes come to regard it as a lower cost option versus wind-paired storage.”

“Additionally, the total energy storage investment pot is projected to increase from $18 billion in 2019 to $100 billion by 2025,” the analysts said.