Grid Scale Stationary Battery Storage Market

Grid Scale Stationary Battery Storage Market Size (2024-2029):

The Global Grid Scale Stationary Battery Storage Market size is estimated at USD 48.77 billion in 2023 and is projected to reach a valuation of USD 209.51 billion in 2029, with a CAGR of 33.85% during the forecast period 2024-2029.

Market Overview:

Market Growth:

Rapid industrialization has increased the demand for energy-efficient energy sources, which will drive market growth during the forecast period. In addition, the growing awareness of the green environment will result in high demand for grid-scale stationary battery storage for years to come. Apparently, technological advances related to the expansion of the network of networks will lead to the growth of the market in the following years.

Market Drivers:

Cost and performance improvements - When it comes to lithium-ion batteries, in particular, thanks to expanding EV markets and manufacturing economies of scale, costs are coming down while performance improves.

The movement towards renewables - Broad support for renewables and reducing emissions is also driving the adoption of battery storage solutions. This is particularly evident in the public and private sectors.

Participation in wholesale electricity markets - Battery storage can aid balance the grid and increase power quality regardless of the source of generation. Almost all of the countries we analyzed are reorganizing their wholesale market structure to allow batteries to provide capacity and ancillary services.

Financial incentives - Many are increasing the availability of financial incentives for investment in storage. This echoes the growing awareness among policymakers of the range of benefits that battery storage can offer throughout the electricity value chain.

Phase-outs of FITs or net metering - Reduction of Feed Tariffs (FIT) or Net Metered Payments is emerging as a driver of behind-the-meter battery deployments in some countries as customers strive to get the most value from their on-ground solar installations in the absence of these incentives.

National policies - Many countries are turning to renewable energy storage to reduce dependence on imported energy, improve the reliability and resilience of their systems, and move towards decarburization and environmental goals.

Market Restraints:

Perceptions of high prices - Costs have fallen so rapidly that lawmakers may have outdated notions about the cost of systems, believing that batteries still cost the same as a few years ago, or even six months ago.

Lack of standardization - Participants in early-stage markets are often faced with various technical requirements, as well as various processes and policies. Battery suppliers are no exception, making the lack of standardization an obstacle to further deployment.

Market Recent Developments:

• Nippon Telegraph and Telephone (NTT) announced its plan to increase renewable energy capacity from 300MW to 7.5GW by 2030 to stimulate business growth. In this regard, NTT's energy unit, NTT Anode Energy, plans to invest USD 928 million per year until 2025 to develop renewable energy infrastructure.

GRID SCALE STATIONARY BATTERY STORAGE MARKET REPORT COVERAGE:

Market Segmentation:

Grid Scale Stationary Battery Storage Market - By Grid Services:

• Frequency Regulation
• Flexible Ramping
• Black Start Services        
• Energy Shifting and Capacity Deferral
• Transmission and Distribution Congestion Relief
• Capacity Firming
• Reduced RE Curtailment
• Reduced Reliance on Diesel Gensets

The frequency regulation segment is expected to experience notable growth due to the growing preference for renewable energy sources for power generation. Frequency regulation services facilitate the synchronization of these power generation resources for efficient grid operation. The increasing integration of clean energy systems, including solar and wind energy, has resulted in the installation of cost-effective solutions to synchronize different grids, which will positively influence the demand for frequency regulation services, which are expected to turn to drive segmental growth.

Grid Scale Stationary Battery Storage Market - By Battery Type:

• Lithium Ion
• Sodium Sulphur
• Lead Acid
• Flow Battery

The sodium-sulfur battery segment is expected to see significant growth due to optimal energy, power density, and low product cost. Additionally, the high-temperature stability and enhanced safety offered by these batteries make them suitable for grid-scale operations. Sodium sulfur batteries are mainly used for load leveling, transmission and distribution network management, stabilization of renewable energies, and auxiliary services. Other features such as long shelf life, fast response time, and lack of self-discharge will further contribute to the growing demand for products, thus promoting segmental growth.

Market Regional Analysis:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

The grid-scale stationary battery storage market in Asia-Pacific is expected to experience substantial growth due to the rising call for electrification in rural areas, as well as increased investments for the expansion of power generation capacity in the region. Additionally, increasing industrialization in major economies such as China, India, and ASEAN countries will stimulate the need for reliable electricity and grid stability. As a result, energy storage systems are widely adopted for frequency regulation and other auxiliary operations. Continued efforts to reduce the carbon footprint, along with growing renewable energy infrastructure, will further stimulate the growth of the regional industry. Speaking of energy storage developments in Japan, in 2020, Nippon Telegraph and Telephone (NTT) announced its plan to increase renewable energy capacity from 300 MW to 7.5 GW by 2030 in order to stimulate its business growth. . In this regard, NTT's energy unit, NTT Anode Energy, plans to invest USD 928 million per year until 2025 to develop renewable energy infrastructure.

Competitive Landscape:

In 2020, BASF announced its partnership with NGK Insulators Ltd. for the development of next-generation sodium-sulfur batteries. Through this partnership, the companies aim to combine BASF's extensive experience in chemistry with NGK's skills in battery design and manufacturing. Obviously, this strategic approach will not only support companies' goal of offering new and improved products but will also strengthen their position in the global marketplace.

Impact of Covid-19 on Grid Scale Stationary Battery Storage Market:

Currently, worldwide industries are experiencing moderate growth due to the outbreak of the novel coronavirus (COVID-19). New projects experienced limited steepness due to large-scale foreclosure of commercial activities and existing projects saw a disruption in operations due to the unavailability of labor. However, if the growth of the virus slows down in the coming months, the grid-scale stationary storage battery industry will experience accelerated growth because of a strong focus on adopting sustainable power supply solutions.

Market Key Players:

1. Hitachi Chemical Co. Ltd
2. Uniper, Tesla, Samsung
3. Johnson Controls
4. GS Yuasa Corporation
5. LG Chem, SDI
6. NGK Insulators, etc