Global and China's Electrochemical Energy Storage Market Overview

Introduction

Electrochemical energy storage (EES) has become a cornerstone of the modern energy landscape, providing a crucial bridge between the intermittency of renewable energy sources and the demand for reliable power supply. The application of EES technology in microgrids and other energy systems has gained significant traction, reflecting the growing need for flexible and sustainable energy solutions. In this article, we delve into the global and China's electrochemical energy storage market, examining its current state, typical use cases, and the future prospects that lie ahead.

Industry Brief

Global Electrochemical Energy Storage Market

In 2019, the global EES market reached a cumulative installed capacity of 9,520.5MW, marking a substantial 43.7% increase from the previous year. Despite the rapid growth, the pace has somewhat slowed, indicating a transition towards more deliberate and orderly market development. This suggests that the industry is maturing, with stakeholders focusing on creating more sustainable and integrated energy storage solutions.

China's Electrochemical Energy Storage Market

China, a global energy powerhouse, has seen an impressive growth in its EES market. The cumulative installed capacity in 2019 stood at 1,709.6MW, a staggering year-on-year increase of 59.4%. The Chinese market's exponential growth reflects the country's commitment to green energy and its strategic pivot towards energy storage as a key component of its energy infrastructure.

Application of Electrochemical Energy Storage Technology in Microgrids

Microgrids are localized energy systems that can operate independently or in conjunction with the main power grid. These systems are increasingly incorporating EES technology to enhance their efficiency and reliability.

Two Typical Cases

Island Microgrid Project: In island settings, microgrids face unique challenges such as high costs for grid connectivity, environmental concerns from diesel generators, and instability from renewable sources. A microgrid project on an island implemented an off-grid system with photovoltaics and an EES system of 140kWh. This setup improved the island's power quality and reduced reliance on diesel generators, demonstrating the potential of EES in remote locations.

Village Microgrid Project in Lianyungang: This project aimed to create a comprehensive energy service area integrating "light, wind, and storage". It achieved 100% user energy storage resource access, promoting smart homes and electric vehicle consumption. The project's success highlighted the versatility of microgrids and the role of EES in advancing sustainable energy consumption models.

Future Prospects

The future of the EES market, especially within the context of microgrids, is shaped by three main factors:

Policy and Technological Advancements: As renewable energy sources like wind and solar continue to grow, supported by favorable policies and technological innovations, EES will play a pivotal role in ensuring grid stability and energy availability.

Integration with Renewable Energy: The inherent intermittency of renewable energy sources necessitates the use of energy storage to balance supply and demand. EES technologies are crucial in enabling microgrids to efficiently manage and utilize renewable energy.

Development of New Business Models: The evolving landscape of EES calls for innovative business models that are both technically feasible and economically viable. Supportive policies and market mechanisms will be crucial in nurturing these new models.

Industry Policies and Suggestions

Both the State Grid and China Southern Power Grid have issued guiding opinions to promote the healthy and orderly development of EES, including investment in energy storage businesses, research on the impact of energy storage, and standardization of grid connection management. These policies aim to foster a conducive environment for the growth of EES and to support the integration of energy storage into the broader energy system.

Conclusion

The global and China's electrochemical energy storage markets are at a pivotal point, with significant growth potential and strategic importance in the transition towards more sustainable energy systems. The application of EES in microgrids has demonstrated the versatility and value of this technology in enhancing energy resilience and sustainability. With supportive policies and continued technological advancement, the EES market is poised for continued expansion and innovation, contributing to a cleaner and more reliable energy future.