Energy storage on the grid to surpass $30 billion in annual market value by 2022 – Pike Research

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Energy storage on the grid to surpass $30 billion in annual market value by 2022 - Pike Research

Greentech Lead America: The market for energy storage on
the grid, starting from a very low base in 2012, will surpass $30 billion in
annual value by 2022m according to recent report from Pike Research.

The total capacity of ESG systems worldwide will reach
almost 56,000 megawatts by 2022, the study said.

Advances in next-generation pumped storage, compressed
air energy storage, and advanced batteries have multiplied the technology
options available for energy storage on the grid (ESG), while, at the same
time, the applications for ESG are also increasing.

 Rapidly changing energy mixes and increasingly
volatile load profiles will challenge grid operators to deliver reliable and
secure electricity, encouraging demand for ESG over the next decade, the report

“One of the key challenges for energy storage will be to
deliver cost-effective solutions for these grid stability issues,” said
research analyst Anissa Dehamna. “Market structures still must catch up with
the market to acknowledge the value of energy storage to grid operators and
power consumers. At the same time, the industry must solve issues around
business models and the supply chain in order to successfully scale up and
fully commercialize these emerging technologies.”

A key business model shift in the ESG market is
increasing specialization, according to the report. Specifically, a significant
number of recent strategic decisions and partnerships reflect a narrower market
focus on the part of technology vendors.

Instead of targeting many different markets and
countries, more and more vendors are targeting their sales efforts on one or
two markets or applications, and are repositioning themselves in the energy
storage supply chain, the report “Energy Storage on the Grid” said.

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