Annual installations of grid-connected energy storage is expected to rise by fivefold by 2025, reaching 15.1 gigawatt a year, according to research from IHS Markit.
The consultancy firm said the grid-connected storage market was set to grow by more than 5GW in 2020, despite the COVID-19 disruption to the global energy market.
More so, revenues for annual grid-connected storage hardware are expected to more than double during the time, from $4.2bn in 2020 to $9.5bn in 2025, while the cost of battery module prices are expected to fall by 32 per cent, increasing the demand for energy storage across the world’s electricity grids.
“The 2020 rebound highlights the importance of the technology and the strength of the underlying market fundamentals,” Research Manager at IHS Markit, Julian Jansen, said.
“The increasing competitiveness and critical role of battery energy storage assets in supporting the decarbonisation and resilience of the electricity system means that opportunities for energy storage continue to develop despite the turmoil caused by the Covid-19 pandemic,” Jansen added.
According to IHS, the United States is expected to remain the world’s largest market for grid-connected energy storage over the next five years due to a strong pipeline of projects and energy firms capitalising on the investment tax credit.
It added that China would emerge as the second largest global energy storage market by 2025, with 6.5GW of systems due to have been installed by then.
