Global Stationary ESS (Energy Storage System) Market: Key Research Findings 2019

Yano Research Institute (the President, Takashi Mizukoshi) has conducted a survey on the global stationary ESS (Energy Storage System) market for 2019 and has found out the market trends, the trends by storage type, the trends of market players, and the future outlook.

Transition and Forecast of Global Stationary ESS (Energy Storage Systems) Market Size by Installed Location
Transition and Forecast of Global Stationary ESS (Energy Storage Systems) Market Size by Installed Location

Market Overview

Stationary ESS (energy storage systems) have gone beyond their conventional impression of being an emergency backup power source, and have started being used diversely, such as for adjusting frequency for electric power systems, for power output stabilization stemming from expanding introduction of renewable energy, for peak shifting or peak cutting of power for large users, and for regenerative braking at railway trains, which led the market to become fully launched.

The stationary ESS (energy storage systems) market size in 2018 based on the shipment capacity at manufacturers is likely to attain 9,909 MWh, 265.5% of the size of the previous year. The market growth has been led by the demands for stabilizing electric power systems stemming from expanding introduction of renewable energy, for stable supply of electric power, for reducing electricity cost at big users by maximizing the captive use of electric power, in addition of being as conventional backup power source. As the electricity cost on average is likely to rise, the demand for stationary ESS have been growing: U.S. has started connecting excessive electric power stored in ESS to the wholesale electricity market, whereas in Japan, the photovoltaic power users who supported extensive use of solar panels have begun being encouraged to buy stationery ESS as some of them face the end of FIT contract period from 2019. In other words, external environmental changes are to urge the use of stationary energy storage systems.

Noteworthy Topics

Though Economic Rationality Has Not Yet Been Established, ESS Market is Still Indispensable

As renewable energy has widely been introduced, the demand for stationery ESS is on the rise. In fact, however, the economic rationality from “utilizing stored energy” has not yet been established yet. Introduction of ESS is still largely dependent on the subsidy.

That said, ESS is indispensable to solve the various problems of expanding adoption of massive renewable energy that is essential to attain low-carbon society. Global blue-chip companies one after another have entered the market as they perceived it as promising to grow, which can increase the production volume of batteries and reduce cost due to fiercer competition among ESS makers. Because the prices have prevented ESS from being adopted from the viewpoint of profitability, price reduction is expected to increase installation of ESS without the support by the government.

Future Outlook

The global stationary ESS market size based on the shipment capacity at manufacturers is likely to expand because of growing demands in 2020 and beyond such as by renewable energy producers likely to shift the use of their excessive power from selling it to captive consumption due to reduction of FIT prices, and because of the demand to take measures against aging power network, and the demand for stably providing electric power in the regions with small population where it is difficult to expand the power network infrastructure. The global stationary ESS market (based on the shipment capacity at manufacturers) is likely to attain 69,892MWh by 2025, among which the global residential-use ESS market is projected to achieve 11,943MWh.

Research Outline

1.Research Period: April to July, 2019
2.Research Object: Domestic and overseas manufacturers of stationary ESS and market players relating to storage systems
3.Research Methogology: Face-to-face interviews, surveys via email/telephone, and literature research

Stationary Energy Storage Systems:

Stationary ESS (Energy Storage Systems) in this research indicates chemical energy storage systems utilizing lead-acid batteries, lithium-ion batteries, nickel-hydrogen batteries, redox flow cells, and Na-S batteries. This research classified the stationary ESS market into the following categories according to the installed place and segment:

For Residence: ESS installed at detached houses or at apartments or condominiums.
For Power Systems: For stable supply (installed at power plants and substations, co-installed at recyclable energy power supplies), for micro grid systems used in isolated islands.
For Industrial/Business Use: for taking measures of BCP (Business Continuity Plans), for large users (factories, buildings), and for mobile phone base stations.

Note that the market size of the global stationary ESS market does not include ESS for mobile phone base stations.

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