The global market for utility-scale electricity storage technology is expected to reach $26.2 billion in 2020
(PRWEB) July 01, 2015
A number of current global trends are supporting significant near-term investment in new power infrastructure. BCC Research reveals in its new report that high fuel prices, emerging smart grid technologies, and improved peak demand management, along with global warming and the cost of building new generating plants, has propelled the electrical energy storage (EES) to a new level of recognition and importance.
The global market for utility-scale electricity storage (UES) technology totaled $12.1 billion in 2015. A five-year compound annual growth rate (CAGR) of 16.4% is projected to bring the market to almost $26.2 billion in 2020. The pumped hydro storage (PHS) market, the largest UES technology, is projected to almost double from $10 billion in 2015 to $19.6 billion in 2020, reflecting a 14.3% CAGR. Through 2020, compressed air energy storage (CAES) should grow the fastest, demonstrating a 27.5% CAGR to reach $2.7 billion from $788 million in 2015. Battery energy storage technologies should grow at a 25.1% CAGR to reach $3.9 billion in 2020 due to an improved understanding of new technologies, a reduction of production costs, and eventually market prices of grid scale batteries.
Much of the world’s electricity generation industry is in the midst of a turning point. In support of carbon dioxide (CO2) emissions reduction regulations and industry trends, the electricity generation sector is in the process of transitioning away from coal- and oil-fired electricity production, and toward the installation of increasing proportions of renewables.
“Construction of proven large-scale technologies such as pumped hydro and CAES could immediately benefit a number of utilities, but the cost and current investment risks can be formidable,” says BCC Research analyst Christopher Maara. “Another hurdle for large-scale storage is the aggregation of energy storage benefits that can be spread across a number of stakeholders. While there is little doubt that the overall social benefits of large storage plants are positive, the benefits are distributed among power producers, system operators, distribution companies, end users and society at large. However, the decision to finance and build a plant often falls onto a single entity, and it is often unclear how that entity can capture enough benefits to justify the investment.
Utility-scale Electricity Storage Technologies: Global Markets (EGY056C) Analyses of global market trends, with data from 2014, estimates for 2015, and projections of CAGRs through 2020.market's dynamics including growth drivers, inhibitors, and opportunities.
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