The falling cost of energy storage technology will break up the concentrated nature of the global market, according to a new report by IHS Technology.
In 2016, IHS forecasted that South Korea, United States and Japan represent 59% of energy storage installations. The 3 countries will all top 100 megawatts in 2016 according to a Grid-Connected Energy Storage Report by IHS’ Energy Storage Intelligence Service. The compact market spread is also expected to diversify during the course of the next 5 years.
According to Sam Wilkinson, solar supply chain and energy storage analyst of IHS Technology, the three countries are forecast to account for the majority of combined global installations next year. Thus, it shows just how few countries are experiencing significant commercial deployment of energy storage. He also said that other global markets currently remain firmly in the test, pilot and demonstration stages.
He also added that other markets in the future will be The United Kingdom and Australia where great interest in residential battery storage exist. Germany is also gaining momentum through their Utility-scale storage major projects being announced. China is also becoming a major market which is in line with their exceptional growth in power and renewables market is experiencing.
The IHS report focuses on large-scale systems as compared to residential installs. The said price drops have been led by li-ion batteries with prices falling 53% between 2012 and 2015. The decreasing cost of other supporting components will also have an effect. IHS also reported that more than 60% of the cost of reduction in a 30-minute duration utility-scale system from 2013 to 2019 will not come solely in batteries but from the balance of system equipment.
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