The energy industry is amidst a historic transformation as it moves from a traditional grid framework to decentralized, decarbonized, and digitized systems. Energy storage has emerged as a critical component of these dynamic energy architectures.
In November, global stakeholders gathered at Energy Storage North America (ESNA) to discuss this transition, its influence on emerging markets, and fresh opportunities. Participants shared perspectives on regional challenges, differing regulatory approaches, and views on how to best integrate energy storage into their region’s future energy needs.
In a new white paper entitled Global Grid Transitions, IHS Markit has consolidated many of the conference’s most valuable discussion points, highlighting the energy storage market’s growth potential; challenges including integration, regulatory frameworks, and intelligent coordination of dynamic DER technologies; and key solutions for energy storage advancement.
The shift toward distributed generation supported by energy storage is surging worldwide. British officials recently announced that in the UK, the capacity of renewable energy has surpassed that of fossil fuels. According to The Guardian, the amount of renewable capacity in Britain tripled in the past five years to reach 41.9 gigawatts. Meanwhile, a globalizing energy storage market is opening unprecedented growth opportunities.
In 2018, behind-the-meter installations accounted for more than a third of global battery storage installations and experts believe that the rise of distributed energy storage will continue. In fact, by 2025, IHS Markit predicts annual behind-the-meter installations of 4.8 GW.
It’s clear that the paradigm shift currently underway will not only affect the power industry, but it will also profoundly impact global infrastructure and economics. What are your impressions with regard to growth opportunities for the global energy storage market?