The global lead-acid battery market for energy storage systems is forecast to grow at 5% a year between 2014 and 2019, according to a report by Technavio Research to be released in November.
The market is highly competitive and is characterized by the presence of numerous global, regional, and local vendors. Their growth is dependent on factors such as competition, advances in technology, changes in government policies, and environmental regulations.
California focuses on renewable sources of energy generation to increase power stability and reduce dependence on fossil fuels.
The three private utilities in the state must — by state law — obtain more than 1,300 MW of energy storage capacity by 2020. This challenging goal, says the report, will increase demand for lead acid batteries.
Energy storage systems need to balance intermittent wind and solar resources to keep the grid stable. ESS can help the state achieve its goal of having 50% of its electricity coming from renewable sources by 2030.
The report says pollutants from manufacturing lead-acid batteries is a major challenge affecting market growth. The report examines the market by region and ownership model.
Separately, Technavio issued a report in October saying that the smart grid equipment market in the US should grow by around 9% a year between 2015 and 2019.
“Integration of renewable energy sources with the power grid network is gaining prominence as it helps to minimize the carbon footprint of the electric power system,” says Navin Rajendra, an energy analyst.
“High production rate of renewable energy has increased the demand for smart grids owing to the requirement for adequate and reliable power transmission. The provisions under the Energy Independence and Security Act of 2007 and EPA programs stipulate the need to increase the share of renewable energy in the total energy mix,”