MARKET OVERVIEW- EUROPE STATIONARY BATTERY STORAGE MARKET
Stationary energy storage systems are designed to store energy and release it at a later point in time to power equipment. In the upcoming years, stationary energy storage will play a crucial role in the transition from a system based on fossil fuels to a system primarily based on renewable energy. Without energy storage, there will be no energy transition. A stationary energy storage system can store energy and release it in the form of electricity when it is needed. In most cases, a stationary energy storage system will include an array of batteries, an electronic control system, inverter and thermal management system within an enclosure. The European Stationary Battery Storage market is expected to grow due to key factors such as rising demand for electric vehicles across the Europe region, and a growing need for the uninterrupted power supply. Additionally, a growing renewable energy sector will promote the market as it require more energy storage. Furthermore, favourable government policies to encourage sustainable energy solutions along with various energy storage projects in the European region are anticipated to provide an ample opportunity for the market players during the forecast period.
MARKET DRIVERS
The growth of the European Stationary Battery Storage market is driven by rising demand for electric vehicles across the Europe region. Electric vehicles are the key driving factors for battery storage, for instance, according to the IEA forecast, the 2050 net-zero emissions scenario states that by 2030 the electric car fleet is expected to be over 300 million and electric cars accounting for 60% of new car sales. Hence, the increasing demand for electric vehicles in Europe coupled with pros of applying stationary storage battery are among major factors driving the market growth in the foreseen period. Thus, rising demand for electric vehicles is a major factor which is expected to drive the growth of the market. Also, high growth in the renewable energy sector is expected to positively contribute towards the growth of the market. Renewable energy is one of the fastest growing sources of energy worldwide. Stationary storage battery systems are used to regulate voltage and frequency, reduce peak charges, integrate renewables and provide backup power and are responsible for approximately 60% of the total cost of the system. According to IEA, the wind, solar, and other renewable energy would be the fastest growing areas of energy for upcoming years, estimated in 2019. This is expected to have a positive impact on the growth of the market.
MARKET OPPORTUNITIES
The market is expected to witness promising opportunities with the implementation of innovative projects in renewable energy sector. For example, in November 2021, a joint venture between TagEnergy, a global clean energy group, and UK-based Harmony Energy announced that they would jointly develop two battery energy storage projects in Scotland and England. Both projects will use the Tesla megapack multi-megawatt BESS technology. The Chapel farm near southern England has an electricity generation capacity of 99 MWh, while the Jamesfield farm near Scotland has a generation capacity of 98 MWh. Such strategic initiatives are expected to create lucrative opportunities for key players in the market.
MARKET RESTRAINTS
Despite their increasing scope of use, stationary battery energy storage units have been associated with brain and kidney damage. Awareness of these health issues can, to some extent, create barriers to industry development to some extent. Moreover, the expensive nature of storage systems is hampering the growth of the market. Additionally, maintaining the batteries along with cleaning them properly is a crucial element. The precautions to be taken when cleaning batteries. Thus, all these factors are expected to hamper the growth of the market.
MARKET GROWTH CHALLENGES
A key challenge which may affect the growth of the market is the requirement of significant capital investment. A specific unit managed by the World Bank reported that the total installed cost of various energy storage technologies can vary widely from USD 2,000 per kW to growth to about USD 3,300, which has an impact on the initial capital expenditure. This is major factor which is expected to pose as a key challenge for the market growth over the forecast period.
CUMULATIVE GROWTH ANALYSIS
The report provides in-depth analysis of Europe Stationary Battery Storage market, market size, and compound annual growth rate (CAGR) for the forecast period of 2023-2029, considering 2022 as the base year. A rise in demand for electric vehicles is anticipated to stimulate the growth of the market and due to this factor, the market is expected to witness the growth at a specific CAGR from 2023-2029.
EUROPE STATIONARY BATTERY STORAGE MARKET SEGMENTAL OVERVIEW
The Europe Stationary Battery Storage market comprises of different market segments like, battery type, application, end-user and country.
EUROPE STATIONARY BATTERY STORAGE MARKET BY BATTERY TYPE
By battery type, the Europe Stationary Battery Storage market includes key segments like
- Lithium-Ion
- Sodium Sulphur
- Lead Acid
- Flow Battery
- Others
The lithium-ion segment is anticipated to dominate the market over the estimated time period. Lithium-ion batteries are commonly used in electronic devices, such as smartphones, laptops, clocks, watches, and remote controls. The types of lithium-ion batteries include lithium iron phosphate (LFP) and nickel manganese cobalt (NMC). The implementation of strategic initiatives by public and private sector in the production of lithium-ion batteries is expected to drive the growth of the segment. For instance, the European Battery Partnership Association and the European Commission have established a public-private partnership to promote research into advanced battery technologies in Europe, which is expected to drive market growth in this region during the forecast period. Also, the advantages of LFP batteries have recently attracted major electric vehicle manufacturers such as Tesla. The company’s CEO, Elon Musk, recently expressed his expectation of all stationary energy storage products shifting to lithium iron phosphate batteries.
The sodium-sulphur segment is expected to grow at the fastest rate over the forecast period. The sodium-sulphur batteries do not need to transmit power immediately after generation and can be discharged as needed, allowing transmission upgrades to be deferred. In addition, Sodium-sulphur batteries are used to maintain backup power and power supplies for micro/off-grid and industrial customers. Further, this battery is useful in hydrogen production project. This is a key factor that is expected to drive the growth of the segment.
EUROPE STATIONARY BATTERY STORAGE MARKET BY APPLICATION
The Europe Stationary Battery Storage market finds major applications in
- Grid Services
- Behind the Meter
- Off Grid
The grid services segment is estimated to lead the market during the forecast period. Grid services include frequency regulation, flexible ramping, black start services, energy shifting and capacity deferral, T&D congestion relief, capacity firming, reduced RE curtailment and reduced reliance on diesel gensets. The growing need for reliable power supply for efficient grid management is expected to drive the demand for stationary battery storage. Also, the cost-effectiveness offered by these systems is expected to further stimulate the growth of the segment. Furthermore, key initiatives by government as well as private organizations to improve electrical grid flexibility and stability is expected to stimulate the demand for stationary battery storage systems over the estimated time period.
The behind the meter segment is expected to grow at the fastest rate over the forecast period. Behind the meter services include electricity consumers, system operation and mini grids. Rising demand for maintaining an uninterruptible electricity supply is expected to contribute to the growth of the segment. Also, the rising need for efficient electric grid management, the launch of several renewable energy projects and key investments by the government as well as private organizations are key factors driving the demand for stationary battery storage systems by electricity consumers.
EUROPE STATIONARY BATTERY STORAGE MARKET BY END-USERS
The Europe Stationary Battery Storage market include end-users like
- Utility
- Commercial and Industrial
- Residential
The utility segment is estimated to lead the market during the forecast period. Utility-scale battery storage systems have a typical storage capacity ranging from around a few megawatt-hours (MWh) to hundreds of MWh. Utility scale energy storage enable is used as a major store of renewable energy into the grid. The lithium batteries are mostly used in the grid. According to the U.S. Department of Energy, the Li-ion to capture the majority of energy storage growth in all markets over at least the next 10 years. The growth of segment is mainly attributed to the growing need for the renewable energy across the developing countries, and major players are focusing on the cost reduction. In addition, the favourable government regulation to reduce the carbon emissions are expected to boost the demand for the batteries in utility energy storage.
The commercial and industrial segment is expected to grow at the fastest rate over the forecast period Many industrial projects are being depoyed in the various countries, which is expected to grow the demand for the industrial energy storage and ultimately boost the demand for stationery stationary battery storage in the market. For instance, in the Austria, the commercial and industrial storage energy plant is installed, which has a MWp PV plant on the roofs and two fast charging stations with up to 150 kW of charging capacity. Also, the commercial storage market's is growing at a significant rangerate. For example, in Europe, around 380 commercial storage systems were registered in 2019, and the figure rose to 630 commercial storage systems in 2020. Added capacity increased 60% year-over-year in 2020 to 42 MWh and an output of 21 MW. Thus, the growing demand for the industrial and commercial storage in Europe is expected to boost the demand for stationery stationary battery storage in the market.
EUROPE STATIONARY BATTERY STORAGE MARKET BY COUNTRY
The Europe Stationary Battery Storage market is studied for the following countries
- United Kingdom
- Germany
- Spain
- Italy
- France
- Rest of Europe
Germany is projected to lead the market during the forecast period. The growth of the market in Germany can be attributed to the growing demand for the home storage systems. According to the Institute for Power Electronics and Electrical Drives (ISEA), the market for home storage systems (HSS) grew by 50% in terms of battery energy in 2021 compared to 2020, and is by far the largest stationary storage market in Germany. According to the same source, in Germany, around 145,000 home storage system (1.27 GWh / 0.73 GW) were installed solely in 2021.
France is expected to witness high growth over the projected time period. The stationary storage market in France is growing rapidly. In Dunkirk (Northern France), the largest battery-based electricity storage system was built at the end of 2020. Also, according to the Energy Storage News, around 900 MW of battery storage system should be deployed in continental France by the end 2023. Total has announced the launch of an energy storage project in France. The 25 MW project will be the largest lithium-ion energy storage system installed in the country. Developing stationary energy storage solution is a key part of Total’s strategy for promoting the expansion of renewable energy, which is intermittent in nature. Adding renewable energy to France will help stabilize the domestic power grid while contributing to the goal of increasing its renewable energy share. Ultimately, driving the demand for stationary battery storage in the country.
COVID-19 IMPACT ANALYSIS ON EUROPE STATIONARY BATTERY STORAGE MARKET
Axiom MRC provides a 360-degree analysis of micro and macro-economic factors on the Europe Stationary Battery Storage market. In addition, complete analysis of changes on the Europe Stationary Battery Storage market expenditure, economic and international policies on supply and demand side is provided in this exclusive report. The report also studies the impact of pandemic on Europe economies, international trade, business investments, and GDP and marketing strategies of key players present in the market.
The market was negatively impacted by COVID-19 in 2020. COVID-19 restrictions had a negative impact on, raw materials, such as lead, which witnessed a significant drop in demand in 2020, thus, adversely affecting lithium-ion battery manufacturing activities. According to the International Trade Centre, lithium-ion accumulators' import value decreased to USD 1.05 billion in 2020 from USD 1.29 billion in 2019. But, with the end of lockdown restrictions and due to rising investment in renewable energy, the market is expected to witness significant growth opportunities in the upcoming years.
COMPETITIVE LANDSCAPE ANALYSIS
The competitive landscape analysis of Europe Stationary Battery Storage market is majorly focused on expanding the growth of the stationary battery storage industry with new product innovation, business expansion, increasing presence of range of manufacturer operating in stationary battery storage sector has led the growing demand for the market. Besides, the market offers range of stationary storage batteries in different applications to fulfil the required demand of consumer which is further contributing healthy growth in the market.
The key players studied in market are
- SCHMID Group
- LG Chem Ltd.
- Tesla
- Panasonic Corporation
- Lockheed Martin Corporation
- Johnson Controls
- HydraRedox
- Siemens
- CMBlu Energy AG
- TOSHIBA CORPORATION
- Invinity Energy Systems
- Exide Technologies
- Durapower Group
- SCHMID Group
- Duracell
- BYD
- Furukawa Battery Co., Ltd.
RECENT DEVELOPMENT:
February 2022: HOPPECKE Batterien GmbH & Co. KG had started its production of the HOPPECKE grid | Xtreme VR pure lead battery in Poland. The plant would cater for the demand to lead acid batteries in Europe. With this plant, the company focuses on producing lead acid batteries used in the data centre and telecom industry.
July 2021: Canada-based Largo Resources signed an agreement with Enel Green Power Spain, the Spanish branch of Enel Green Power, to supply VCHARGE ± vanadium redox flow battery system for the upcoming renewable power project of the company. Largo Clean Energy is expected to provide a five-hour, 6.1 MWh battery system for a project in Spain, which is expected to get commissioned in the third quarter of 2022.
