Asia Pacific Is Expected to Be the Largest Market for New Utility-Scale Energy Storage Capacity
A new report from Guidehouse Insights examines new utility-scale energy storage (UES) projects in terms of power capacity (MW), energy capacity (MWh), and project deployment revenue, through 2029.
UES is now considered a key component of new power system planning efforts in countries around the world. This represents a major shift from just 2 years ago when the technology was still largely considered too expensive or complex for integration into energy markets. According to the report, through 2029 Asia Pacific is expected to be the largest market overall with a cumulative 60,747.4 MW of new UES capacity, representing a compound annual growth rate of 39.4%.
“UES is a multifaceted technology capable of providing a range of grid services and improving overall power system efficiency,” says Pritil Gunjan, senior research analyst with Guidehouse Insights. “Although the technology can provide operational cost savings for any power system, the single most important driver for the market’s growth is the increasing penetration of variable renewable power generation, notably solar and wind.”
According to the report, falling battery prices have made UES projects cost-competitive with fossil fuel generation and other technologies for numerous applications including peak generation capacity and frequency regulation. However, the most substantial shift has been the improving economics of combined solar-plus-storage projects which are now cheaper than natural gas generation in many countries and account for a large and growing portion of the global UES market.
The report, Market Data: Utility-Scale Energy Storage Market Update, report provides global forecasts for annual deployments of new UES projects in terms of power capacity (MW), energy capacity (MWh), and project deployment revenue. These forecasts are then segmented by global region, technology, and the application or services that the system provides. Additional insight is provided through forecasts for the top 10 largest country-level markets globally. All forecasts cover a 10-year period from 2020 – 2029.