May 21 (Renewables Now) - The global battery energy storage market is gearing for a strong rebound in 2021 after the COVID-19 turmoil, with annual capacity additions expected to reach 23.3 GW in 2025.
This forecast was made in a recent market analysis by Frost & Sullivan, released on Wednesday. The given capacity compares with a total of 4.1 GW that came online last year.
According to the consultancy, the energy storage industry will witness a decline in 2020 as the coronavirus pandemic is causing project delays and restricting access to clients. However, it considers the market fundamentals to be strong, which in turn brightens the minimum-term outlook.
The US and China are expected to be on top of the global market in terms of new capacity additions and installed capacity. South Korea, Germany and Japan will also be on the top-five list.
Overall demand is anticipated to be driven by increased electricity prices and grid demand charges, together with decreased technology costs.
"Residential and commercial customers are facing high energy costs and want to do something to reduce them, as well as guaranteeing security of supply – energy storage enables them to achieve this," said Jonathan Robinson, energy program lead, Industrial at Frost & Sullivan.