Distributed Energy Storage System: Introduction
- Distributed energy storage system enables smooth integration of renewable energy sources to the main grid by reducing their variability. Furthermore, distributed energy storage system helps in storing excess power generated by renewable sources in order to be used during peak demand. Therefore, increase in adoption of renewable energy and rise in demand for clean power are anticipated to be major drivers of the distributed energy storage system market.
- Distributed energy storage system provides support and reduces stress on grid infrastructure during peak hours by providing back-up power, voltage support, frequency support, power quality, and peak shaving in the grid. This enables power companies to meet the rise in demand for electricity with relative ease at any possible time. Therefore, increase in demand for power is estimated to be a key driver of the distributed energy storage system market.
Key Drivers and Restraints of Distributed Energy Storage System
- Integration of advanced technologies, synergetic digital communication, and smart control strategies in existing power grid have resulted in a new phenomenon, known as smart grids, in the power sector. Development of smart grids has transformed the way in which power is generated, distributed, and consumed. It has resulted in better and improved grid utilization, reliability, and security for customers and power companies. Smart grids are now viewed as energy infrastructure solutions for future intelligent cities. Distributed energy storage system helps in balancing power generation and demand across a grid, thereby supporting and playing a crucial role in smart grid implementation and operation. Furthermore, distributed energy storage system enables integration of distributed energy generation systems into main grid, thereby increasing the resilience and reliability of grid operations. Thus, emergence of smart grid is expected to offer lucrative opportunities for global distributed energy storage system market.
- Ratification of the Paris Agreement to curb the rise of global temperature below 2?C has resulted in significant investment in renewable energy sources across the globe. Governments and concerned authorities are investing substantially in order to increase their share of renewables in the energy mix. Sources of renewable energy such as solar, wind, biomass, gas-driven microturbines, fuel cells, and hydropower are gaining momentum in energy generation mix. They are expected to play an important role in power generation. Significant portion of power generated from these renewables is off-grid, and can be intermittent and variable. Such unpredictable nature and abrupt fluctuations in power & voltage necessitate the requirement of energy storage solutions for the effective implementation of these resources. This has resulted in development of distributed energy storage system across the globe.
COVID-19 Impact Analysis on Power Demand
- Governments of several countries across the globe have imposed stringent lockdowns to limit the spread of the coronavirus. Movement of individuals and economic activities, related to goods and services, have come to a halt because of lockdowns. This has adversely affected the demand for electricity for commercial purposes. In turn, this has hampered the global distributed energy storage system market.
Distributed Energy Storage System Market Segmentation
- The global distributed energy storage system market can be segmented based on product type and application
- In terms of product type, the global distributed energy storage system market can be divided into single-phase type, three-phase type, and double-phase fire line type
- In terms of application, the global distributed energy storage system market can be classified into transportation, grid storage, renewable energy storage, and others
Distributed Energy Storage System Market: Regional Segmentation
- In terms of region, the global distributed energy storage system market can be split into Middle East & Africa, Latin America, Asia Pacific, Europe, and North America
- Asia Pacific is expected to lead the global distributed energy storage system market during the forecast period. Large portfolio & capacity of renewable energy sources and limited grid infrastructure presence are key factors driving the distributed energy storage system market in the region. Increase in investments and rise in capacity of renewable energy sources, and growth in incentives for renewables provided by governments and authorities in the region, especially in developing economies of China and India, are likely to drive the distributed energy storage system market in Asia Pacific during the forecast period.
- According to the International Renewable Energy Agency, total renewable electricity generation in Europe stood at 12,97,883 GWH in 2018. Increase in awareness about renewables and growth in government initiatives for renewable power generation in Europe are likely to boost the distributed energy storage system market in the region.
Key Players Operating in Global Market:
- ABB
- MCV Energy
- Johnson Controls
- Schneider Electric
- Siemens
- NEC Energy Solutions
- General Electric
Global Distributed Energy Storage System Market: Research Scope
Global Distributed Energy Storage System Market, by Product Type
- Single-phase Type
- Three-phase Type
- Double-phase Fire Line Type
Global Distributed Energy Storage System Market, by Application
- Transportation
- Grid Storage
- Renewable Energy Storage
- Others (including Communication Base Station)
Global Distributed Energy Storage System Market, by Region
- North America
- Europe
- Germany
- France
- U.K.
- Italy
- Spain
- Russia & CIS
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- ASEAN
- Rest of Asia Pacific
- Latin America
- Brazil
- Mexico
- Rest of Latin America
- Middle East & Africa
- GCC
- South Africa
- Rest of Middle East & Africa
