Renewable generation and energy storage technology have evolved at a similar pace in recent years. Their mutually beneficial relationship is no mystery. Intermittent renewables, like solar and wind power, need storage to be effective, and without the growth in the renewables industry, the demand for new storage capacity wouldn’t be as high as it is.
A recent study confirms that this trend will continue. It also suggests even more growth for battery technology as other factors besides renewables are also contributing to its demand. “Global Advanced Battery Energy Storage Systems Market Insights, Opportunity Analysis, Market Shares and Forecast, 2017–2023,” was released by the research firm GlobalData in April. It tracks the global market for battery storage technology and forecasts robust growth for the industry in the years ahead.
Specifically, it estimates the installed capacity of global battery energy storage system (BESS) will grow from 1.5 gigawatts (GW) in 2015 to over 14 GW by 2020. The report also projects the United States to continue to lead the BESS market over the next five years, reaching a market value of approximately $1.7 billion by 2020.
BESS prices are also forecast to decline by about 50 percent over the same period, due to technological innovations, improvement in manufacturing processes, and increase in competitiveness. This will lead to even more growth for the industry.
According to GlobalData, many factors are contributing to the growth of the BESS market. These include rising demand for electrical vehicles, a favorable regulatory environment, increasing expenditures in renewable energy, and a large pool of automobile companies. Volatility in fossil fuel prices and the development of new battery technology are also helping drive the market’s growth.
The study emphasizes that increasing demand for electric vehicles is a major contributor to the battery storage technology market. The study cites statistics from the International Council on Clean Transport (ICCT), which show the number of hybrid electric vehicles (HEV) in the United States reached up to 15 percent in 2015, and the demand for HEV in the United States has also increased by 36 percent in 2015 from 11 percent in 2014.