The Americas region has an established BESS market, with several states in the US having mandatory targets and regulatory frameworks related to energy storage installation. The region had installed BESS projects with cumulative capacities of about 592 MW by 2015 and is forecasted to reach 4.1 GW by 2020. The market value for the Americas region accounted to $842 million in 2015 and is expected to be around $3 billion by 2020.
In contrast, Asia-Pacific (APAC) and European countries installed BESS projects with cumulative capacities of about 720 MW and 208 MW, respectively, by 2015. These regions are also forecasted to install 5.8 GW and 4.6 GW of BESS projects, respectively, by 2020.
The introduction of BESS in the power sector covers a vast range of applications, resolving concerns such as energy time shift (energy storage when electricity prices are low and energy discharge when prices are high), load following and frequency regulation (balancing electric supply and end-user demand), renewable capacity continuity, transmission congestion relief and energy tariff cost management.
On-grid vs. off-grid solutions
Designed to support the market transition towards decentralised forms of power generation, energy storage can facilitate load balancing and peak shaving either in an on-grid or off-grid application.
Battery energy storage solutions for off-grid are primarily used in “sun-belt” countries with extremely high solar radiation, e.g. on combined PV / energy storage turnkey projects.
On-grid BESS solutions, meanwhile, are designed for the European and North American market to help power grid operators ingrate the growing volumes of intermittent electricity supply from wind and solar installations.
Deployment of BESS remained uneven during 2010-2015, according to Global Data figures, however, analysts expect that a large number of projects will be commissioned within the next five years.
Leading energy storage companies include NGK Insulators, BYD Company, Samsung SDI, LG Chem and Saft Groupe.