Understanding Energy Storage at the Country Level

In an article for Energy Storage News, Navigant Research explores the factors that determine where and when new energy storage markets emerge

While the global energy storage industry has continued its pace of rapid growth during the past year, well-established markets remain highly concentrated in specific regions of the world. In fact, Navigant Research expects the top five country markets to account for 56 percent of the new energy storage capacity forecast to be built in 2017.

Over the coming years, though, this dynamic is expected change. In an article for Energy Storage News, Alex Eller, research analyst at Navigant Research, said the industry is already starting to see significant geographic diversification in the distributed and utility-scale segments.

“Factors such as electricity market structure, retail rates, and renewable energy deployments (among others), have resulted in energy storage markets taking shape in unique ways in different countries,” Eller wrote. “For example, some countries have seen major growth in utility-scale front-of-the-meter (FTM) storage deployments, but little to no activity on the behind-the-meter side (BTM). Alternatively, other countries and regions have seen growing popularity of customer-sited BTM storage systems, but much less demand for FTM projects.”

To determine when and where new energy storage markets are likely to emerge, Eller looked at a variety of factors specific to the distributed and utility-scale segments. He combined these factors with data on existing and planned projects and the activity of vendors and developers to create a forecast for the market size for energy storage in a country. However, Eller cautioned that significant uncertainty remains around growth trajectories and the overall market potential in each country. Particularly in emerging markets, he said, many developments could greatly accelerate or impede the storage industry.

“Given the diversity of energy storage markets globally, it is critical for stakeholders in this industry to understand the market drivers and dynamics seen globally — and how they will affect the size and shape of the energy storage market in any country,” Eller added.

For more insight on this topic, check out Navigant Research’s reports, Country Forecasts for Utility-Scale Energy Storage and Country Forecasts for Distributed Energy Storage. The reports explore the growth trends for energy storage in 26 countries around the world.

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