Australia deployed the most residential storage last year, while the US remains number one in terms of overall storage, according to a report released at the beginning of April by market analysts GTM Research.
The report, titled Global Energy Storage: 2017 year in review and 2018-2022 outlook, stated that a total of 1.4GW and 2.3GWh of energy storage was deployed globally in 2017 — with Australia (246MW) and the US (431MWh) leading the world in term of power and energy capacity respectively.
Germany remains third in the table, with fourth place China expected to continue its aggressive energy storage growth to become the second-largest market by the end of 2019. Both the US and China will then keep the number one and two spots respectively up to 2022, stated the report.
As a result of state and countrywide initiatives and energy storage system improvements the annual global ESS market is predicted to grow to 8.6GW and 21.6GWh in the next four years.
The report stated: “Several markets will see continuous refinement of policy and market mechanisms to encourage energy storage on several fronts – renewable integration, time-of-day-based PPA structures, competitive market redesigns, retail rate reforms, urban and remote microgrids, and distributed resources for grid services and as virtual power plants.”
The first quarter of 2017 helped the US keep its number one spot when the country deployed a total of 234 MWh of storage — a record for any previous US quarter and more than the next three quarters combined.
The bulk of these went toward the fulfilment of California Public Utilities Commission’s fast deployment initiative to meet capacity after the Aliso Canyon facility was closed following a gas leak in October 2016.
The commission’s project’s included Tesla (20MW), Greensmith Energy (20MW) and AES Energy Storage (30MW) completing their lithium ion battery projects in the state during Q1 of 2017.
The state also remains the biggest behind-the-meter market in the US, with the 110MWh of deployments making up 73% of all behind-the-meter residential, commercial and industrial storage deployed in the entire US.
The report said the biggest reason for this market momentum was the renewed diversity in storage efforts from various state markets, including Massachusetts and New York enacting laws to set energy storage targets.
Of the states initiating targets, Arizona stood out with plans for almost 600MW of energy storage in their resource planning. This was overshadowed by Arizona Corporate Commission’s modernization plan that includes 3GW of storage.
Germany’s behind the meter market also grew to around 80,000 installations, mainly residential — in part because the country is one of the strongest global markets for residential PV, stated the report.
And while commercial deployment is growing, the report noted that a lack of incentives was hindering the pick up within the industrial sector.
Last year South Korea’s transmission and distribution company Kepco deployed a total of 112MW of storage. This brings the country’s total to 370MW across 13 projects, as it paves the way to reaching its 500MW frequency regulation services target.