Global Demand For Distributed Energy Storage System

Distributed Energy Storage System (DESS) is a technology that is used to store energy for future use. The DESS can be installed in residential or commercial buildings. It costs about $100 per kWh to run. The global demand for DESS is growing. Will it expand with the introduction of more renewable energy sources?

 

Distributed Energy Storage Market 2022-2032

The Distributed Energy Storage Market is poised for strong growth in the United States, thanks to the rising popularity of renewable energy sources such as solar, wind, and geothermal power. The market is expected to be worth US$ 2.6 billion by 2032. Demand for energy storage systems is also growing rapidly in China, the world’s most populous nation. The country’s rapid urbanization and industrialization have increased energy demand. The country first began using distributed energy storage systems in 1998. This increased energy demand combined with environmental concerns led to rapid development of distributed energy storage systems.

 

Smart grids, combining various technologies, are proving to be highly efficient in generating and distributing energy. Distributed energy storage systems help to support these smart grids by balancing power demand and generation across the grid. The demand for energy storage systems will increase in North America and other regions of the world, as well as in China, India, and South Korea.

 

The growth in energy storage is likely to continue as new regulations are implemented. New regulations will enable grid operators to postpone transmission upgrades, incorporate intermittent resources, increase generating capacity to handle peak loads, and improve grid reliability and resiliency. The government is also taking steps to support distributed energy storage and will continue to do so in the future.

 

Why is the global need for DESS growing?

Distributed energy storage is becoming an increasingly popular solution for power grids, and DESS has many advantages. These include low marginal costs, scalable deployment, and low lead times. Because of these benefits, DESS is economically competitive with other forms of energy storage. This means it is a better alternative for grid owners than costly grid upgrades.

 

The European Commission’s REPowerEU plan is expected to drive growth in the storage industry, with plans to double installed capacity in Europe by 2022. Although the plan does not specify a specific target for energy storage, it does indicate that the rising renewable supply targets will drive the demand for flexible power solutions and storage assets. It also promises to streamline permitting processes for PV systems and storage, facilitating the growth of both grid-scale and distributed energy storage projects.

 

The United States is the world’s largest individual energy storage market. However, China is expected to overtake the US in the next decade. China has a government policy commitment to install 30GW of energy storage by 2025. Other leading markets include Germany and Australia. In addition, Africa and South America will see increased investment in energy storage technology.

 

Government support for early deployments of DESS technologies is helping to derisk the market for investors and promote the development of commercial markets. The United Kingdom, for example, is launching a $100 million demonstration competition for DESS in early 2021.

 

Will more renewable energy boost market growth?

In recent years, renewable energy has been gaining ground. Today, 165 countries and 600 cities have renewable energy targets. These policies are intended to encourage the development of renewable energy and improve energy security. These policies are expected to create new growth opportunities for the global renewable energy market. A new focus on energy security, especially in the European Union, is triggering unprecedented policy momentum towards accelerating the use of renewable energy sources.

 

Renewable energy use is expected to increase in all regions, including North America. China is leading the way in additions of renewable capacity, with a projected increase of over 10% over the next decade. India, on the other hand, is projected to double its capacity additions over the next five years. In addition to China, deployments of solar PV and wind power are expected to accelerate significantly in the United States and Europe. Combined, these four markets are expected to account for nearly 80 percent of renewable capacity additions worldwide.

 

In order to drive this growth, governments must reduce barriers to adoption. Incentives for rapid deployment should be put in place in every country, and governments should adopt strict policies that apply to all end-use sectors. As the market grows, governments will need to expand the flexibility of the electricity grid, invest in long-term transmission lines, and introduce new energy storage technologies.