Global New Power Capacity Additions of Utility-Scale Energy Storage Are Expected to Experience a 35% Compound Annual Growth Rate
The emergence of solar plus storage projects is the most important trend seen in the global industry in the past 2 years
A new report from Navigant Research examines the market drivers, challenges, key trends, and growth projections for the global utility-scale energy storage (USES) industry, with forecasts for power capacity (MW), energy capacity (MWh), and deployment revenue, through 2028.
As the global USES industry continues its pattern of rapid growth, inflection points are arising around the world. The technology is becoming competitive with conventional power grid systems and, while the industry remains diverse, repeating trends are surfacing in the early adopter markets that have grown and become more mature. Click to tweet: According to a new report from @NavigantRSRCH, in 2019, global new capacity additions of USES are expected to reach 1,557.0 MW. This number is projected to grow at a compound annual growth rate (CAGR) of 34.8% to reach 22,909.2 MW of new capacity deployed in 2028.
“A key trend seen around the world is that the early stages of a market’s development typically include projects that are smaller and focused on single applications, often grid stability services such as frequency regulation,” says Alex Eller, senior research analyst at Navigant Research. “As markets mature, such as the US, Germany, and Australia, new projects tend to shift to target more substantial multirevenue stream opportunities for capacity and reserve services, including combined renewables plus storage plants.”
The emergence of solar plus storage projects has been the most important trend seen in the global USES industry in the past 2 years, according to the report. These combined projects account for a large percentage of newly announced energy storage capacity, including some of the largest projects being built. Standardization among these new solar plus storage projects has been key to driving their growth, both in terms of technical designs and contract structures through combined power purchase agreements (PPAs).
The report, Utility-Scale Energy Storage Overview, provides an update on the market drivers, challenges, key trends, and growth projections for the global USES industry. Additional insight is provided on the leading technologies in the market and the leading players across various elements of the USES value chain. Forecasts segmented by region, technology, and application for power capacity (MW), energy capacity (MWh), and deployment revenue extend through 2028. An Executive Summary of the report is available for free download on the Navigant Research website.
*The information contained in this press release concerning the report, Utility-Scale Energy Storage Overview, is a summary and reflects Navigant Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant - a Guidehouse company undertakes any obligation to update any of the information contained in this press release or the report.