Automotive industry and the global market for stationary battery storage
In an era thriving on the notion of energy storage, players in the global stationary battery storage market have in recent years been on an expedition to bring forth technologically advanced networks with supreme connectivity & storage that would help store energy harnessed from renewable sources.
In fact, many industry analysts claim affordable storage as the missing link between the intermittent power such as the solar and wind, and 24/7 reliability. Thus, worldwide utilities and companies in this regard are investigating the potential of battery storage to meet the needs of efficient and uninterrupted power supply.
Recently for instance, in a bid to manage the discrepancies between power consumption and production, European electric carmaker Renault has announced its plan to build a stationary battery storage network – touted as the continent’s largest.
The automotive industry major further revealed that it will be using its old electric car batteries for power storage and will be installing it in three locations – that includes one site in Germany and at two Renault factories in France.
It has been further reported that the stationary battery network will deliver 70 MW of power & store a minimum of 60 MWhr of energy to compensate for those gaps and smooth out the supply from solar & wind energy sources, in turn making them available at the peak times. With the potential to provide enough power for more than 5000 households, Renault’s stationary battery network will undeniably boost the Europe stationary battery storage industry outlook in the ensuing years.
Speaking along similar lines, it is prudent to mention that across Europe, Germany with its rigorous efforts to modernise its electric infrastructure for harnessing renewable power has emerged as a profitable investment ground for potential stationary battery storage industry players.
The presence of automotive industry majors in the region coupled with stringent energy efficiency directives have further enhanced the nation’s scope as a lucrative raw material manufacturing hub for the battery market.
Another region with considerable near-term potential for stationary battery storage market expansion is China. One of the reasons for the same is China’s massively increasing investments in clean energy and electric vehicles.
The advancing economic scenario on account of rapidly developing residential and commercial sectors has further paved way for utilities-based electric infrastructure to drive the regional stationary battery storage industry share.
A significant factor driving the regional industry is also the presence of a favorable regulatory landscape & investments toward the expansion of renewable and sustainable power generating sources.
The NEA’s announcement of investing more than $300 billion toward the integration of renewable energy technologies by 2020 stands as a valid substantiation to the fact that China stationary battery storage industry share will be considerably swayed by the supportive governmental regulations & investments.
If estimates are to be believed, the China stationary battery storage market is estimated to depict a CAGR of 24% over 2018-2030 and will emerge as one of lucrative revenue pockets for potential stakeholders in the ensuing years.
China with its growing attempt toward global expansion and vast market potential is also expected to invade other regions. For instance, China’s biggest battery and electric vehicle manufacturer, BYD (acronym for Build Your Dreams), is recently seen ramping up efforts to seize a considerable 25% share in Australia’s battery storage market, after accounting for an impressive 8% to 10% share in its first year, selling batteries to Australian business and households. The country moreover is also ramping up its production of Lithium ion batteries – which alone accounted for a dominant 51% share of the global stationery battery storage market in 2017. For the record, lithium ion battery market is also expected to hold an impressive USD 60 billion by 2024.
Beyond China’s aggressive invasion in the Australian battery storage industry, Tesla is another prominent name that has announced the installation of a 120 MWh lithium ion battery plant in South Australia.
Considering these business expansion trends, quite undeniably, the market players around the world are vying to discover the approach of choice to stabilize electric grids harnessing energy from renewable sources to the point at which the unpredictable nature of renewable becomes unmanageable.
In fact, it wouldn’t be wrong to say that in the ensuing years where wind and solar energy sources will steadily replace fossil fuels, power storage technologies such as the stationary batteries will be in greater demand to keep the lights on when sun goes down and when the wind drops. Thus, powered by the quest to deliver uninterrupted electricity, the global stationery battery storage market is set to gain remarkable prominence in the years ahead.
With a recorded valuation of $4 billion in 2017, the remuneration worth of stationary battery storage market, as per a report compiled by Global Market Insights, Inc., is claimed to exceed $35 billion by 2030, with an impressive CAGR of 17% over 2018-2030.
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