United Kingdom Energy Storage Systems Market 2022-2027: Around 18.3 GW of Battery Storage is Expected to come Online by 2040 Which in Turn Will Support Growth of Segment – ResearchAndMarkets.com
DUBLIN–(BUSINESS WIRE)–The “United Kingdom Energy Storage Systems Market – Growth, Trends, COVID-19 Impact, and Forecasts (2022 – 2027)” report has been added to ResearchAndMarkets.com’s offering.
The market for energy storage systems in the United Kingdom is expected to witness a CAGR of more than 5% during the forecast period. The outbreak of COVID-19 in Q1 of 2020 has negatively impacted the market, and the impact was mainly on the supply of raw materials used for manufacturing batteries like lithium-ion and lead-acid that are used as energy storage systems.
Factors, such as the growing renewable energy sector, supportive government policies and schemes for energy storage systems (ESS), and improving energy storage economics, are expected to be the major drivers for the energy storage system market in the country. On the flip side, the closing of FiT and other supporting schemes in the country has led to a slowdown in rooftop solar PV installations since March 2019. Thus, this is expected to restrain the growth of the energy storage systems in the country during the forecast period.
- The battery energy storage systems segment is expected to witness significant demand owing to the increasing demand from the residential sector in the United Kingdom.
- The increasing adoption of ESS by the commercial and industrial sectors is likely to create huge opportunities for the market in the coming years.
- The increasing demand for energy storage systems due to the intermittent nature of renewable energy sources, such as solar and wind, is expected to drive the market during the forecast period.
Key Market Trends
Batteries Energy Storage Systems to Witness Significant Demand
- As the battery technology prices have declined, energy storage projects in the United Kingdom have soared up in recent years.
- According to the Renewable UK, as of 2021, there were 1059 energy storage projects in the country, the increase in the number of energy storage projects will spur the growth of the segment during the forecast period.
- Additionally, according to the Renewable UK, as of 2021, pipeline for utility-scale battery storage reached more than 20 GW of battery storage capacity operating, under construction, or being planned in the United Kingdom across 800 projects.
- Flexible technologies like batteries energy storage will become part of the UK’s smarter electricity grid, supporting the integration of more low-carbon power, heat and transport technologies, It is estimated that it could save the UK energy system up to USD 60 billion by 2050.
- In December 2020, InterGen, which currently supplies around 5% of the United Kingdom’s power generating capacity, has been given consent by the UK’s Department for Business, Energy and Industrial Strategy (BEIS) for a lithium-ion battery energy storage project as part of their Gateway Energy Centre development on the banks of the River Thames in Essex. The project is said to be more than ten times the size of the UK’s largest operational battery project and it will be one of the world’s largest project globally.
- Also, According to the National Grid’s lowest carbon and lowest cost scenario, around 18.3 GW of battery storage is expected to come online by 2040 which in turn will support the growth of the segment.
- Therefore, the upcoming energy storage projects in the country and the need to integrate renewable sources with the national grid are expected to drive the demand for battery energy storage systems over the forecast period.
Growth in Renewable Energy Sector to Drive the Demand for Energy Storage Systems
- Renewable power is an intermittent energy source. Therefore, to maintain the constant power distribution of renewable power generation, storage of the electricity is essential. Thus, in comparison to conventional electricity generation sources, renewable power generation has a higher need for energy storage.
- Renewables produce more than 40% of the United Kingdom’s electricity, In 2020 renewables produced 127.8 terawatt-hours of electricity up from, 114.6 in 2019. From 2020, renewable energy has been an important part of the strategy to reduce carbon emissions. To achieve this, a range of technologies will need to be used, such as onshore and offshore wind farms, biomass power stations, or hydropower systems.
- In July 2020, the government announced it will relax planning legislation to make it easier to construct large batteries to store renewable energy from solar and wind farms across the United Kingdom.
- Like many European electricity networks, the United Kingdom’s power infrastructure is well developed, and offers excellent coverage across the country. There are four transmission systems in the United Kingdom, one in England and Wales, two in Scotland, and one in Northern Ireland. Each is separately operated and owned.
- Provinces in the United Kingdom are making significant pushes to rapidly increase the renewable energy share. The Government of Wales has set a new goal to get 70% of the electricity from renewables by 2030.
- Therefore, with government assistance, energy security concerns, and declining costs, the renewable power sector is expected to register significant growth over the forecast period, in turn driving the demand for energy storage systems.
- Tesla Inc.
- Contemporary Amperex Technology Co. Ltd
- Siemens Gamesa Renewable Energy SA
- Voith GmbH & Co. KGaA
- Electricite de France SA (EDF)
- General Electric Company
- BrightSource Energy Inc.
- ABB Ltd
- NGK Insulators Ltd
UniEnergy Technologies LLC
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