Purchase Report

Report Name: Battery Systems for Stationary Storage — Global Market Sizing, Market Forecasts and Market Dynamics

Summary:

The next five years will see the emergence of batteries as an integral tool used by electricity providers to balance generation and load and between supply and demand. Cairn Energy Research Advisors expects this market to grow by 51.1% each year for the next year, from a global revenue total of $6.7 billion in 2015 to $13.2 billion in 2020. This is a tremendous change for the electricity industry: the electricity grid has existed for more than 150 years and has never before used batteries as an important tool for grid management.

 

Cairn ERA Grid Storage Report Chart 1.1

 

What’s different? In a nutshell, everything about the electricity industry is changing. Traditionally, generation moved up and down to meet a flexible load demand. Now, generation is becoming more unpredictable and less flexible while demand is becoming more responsive thanks to new forms of price signals such as demand response and Time-of-Use rates. At the same time, more renewables are being absorbed by the electricity system and being buffered by batteries.

Batteries are now entering the electricity grid in a very big way. Over the course of the next five years they will become a foundational tool for grid management, making the grid cheaper, cleaner, more efficient and more resilient.

This report explores the growth of battery-based stationary energy storage systems through the lens of global regulation, technology developments, pricing dynamics and market demand. The forecasts in this report are based primarily on bottom-up models, meaning that market demand is the primary input into the models. This market demand is estimated based on a threshold pricing model that estimates future pricing of battery systems and the increase in market demand based on those pricing expectations. A further step of top-down validation is added to the forecasting process, in which historical proxy curves are overlaid to ensure parameters of the forecasts that are well within the bounds of past precedents of emerging technologies in similar pricing and regulatory environments.

All forecasts in this report are done on a global basis, broken down into regions as well as applications. All revenue figures are quoted in U.S. Dollars.