- EnergyTrend 2020 Lithium-ion Battery Energy Storage Market Trend -

2020 Lithium-ion Battery Focus- BESS

In order to reduce carbon emissions of power plants, new-form plants also need to follow stringent environmental impact reviews. Optimizing the power structure is also an important intelligent trend in the power industry. As an optimal power buffer, whether it’s traditional power plants that increase power generation efficiency or raise the proportion of renewable energy generated, energy storage systems have different power key roles at the same time. According to the EnergyTrend research division of TrendForce, the integration between centralized generation and distributed smart grid is an inevitable trend in smart city initiatives. Global BESS installation capacity is expected to reach 3.2GWh in 2020, with a 22% CAGR from 2019 to 2024.

According to the research of TrendForce, in order to increase power efficiency, the integration of information on the supply side and demand side through demand response is the only way to improve efficiency. To reduce long-distance power transmission, power generation units are built on the demand side response, further making energy storage systems more resilient when combined with renewable energy. Currently, the use of the power generation side is still the most diversified. Energy storage is also actively aligned with local grid characteristics on the power generation side, seeking entry market opportunities.

Changes in the power industry are subject to regional and statutory differences, with different demand points in different regions. Understanding local characteristics and needs is a necessary way to achieve energy transformation. The North American energy storage market can be divided into FTM, livelihood energy storage and industrial energy storage. For FTM, with tax incentives for ITC and MACRS, the subsidy incentives were extended in 2016, and cost credits ranged from 22% to 30%. For livelihood energy storage, due to the high electricity prices (23-30cent/kWh) in areas such as California and Hawaii, demand for energy storage on the user side was generated. Tesla and Sunrun released solar systems with energy storage systems. Through the market mechanism of electricity prices, the demand for energy storage systems was successfully boosted.

A significant amount of renewable energy generation has been built in Europe. The future focus will be on the off-peak power storage. In recent years, household energy storage has been actively constructed in Germany and other regions. The main key of the UK is the power generation side application. When combining solar energy and energy storage, problems of peak electricity use are mostly solved, especially when the seasonal increase in electricity consumption caused by heater, the power generation end must be configured to level the peak electricity consumption. In the UK’s DSR (demand side resource) bid in early February, the protocol capacity has reached a market scale of more than 100MW a year.

In Asia, China will transform the power ancillary service market from the current price mechanism provided by the government to the mechanism of the power retail market. In the long term, there will be an opportunity to expand the application of energy storage in power grid, and the energy storage service market of BTM will also be improved. However, in the short term, clear policy guidelines will be needed. For Japan, in terms of nearly half a million households of home solar grid-connected systems, a decade of preferential power acquisition has also expired since 2009, boosting the demand for energy storage applications in the aftermarket.

The battery remains the most important aspect in terms of ESS component costs. Owing to the development of EVs, the production capacity of lithium-ion batteries is continuing to expand, subsequently driving more competitive battery prices and stimulating the energy storage market. Major global battery suppliers currently includes LG Chem, SDI, Tesla, Toshiba, and BYD.

In terms of scale, LG Chem holds the largest shares in both Korean and overseas markets. In addition to its long-term partnership with GM, LG has actively expanded its production in Europe in recent years, across EV and ESS industries. As well, SDI has been focusing on the European market and forming partnerships with European automakers. SDI’s development of cylindrical and prismatic batteries is comprehensive and mature. Its cylindrical battery development is second only to that of Panasonic. SDI serves as the main battery supplier of many system-end clients.

Tesla acquired some much-needed experience in automotive battery production from its early partnership with Panasonic. With the recent construction of U.S.-based Gigafactory, Tesla was able to integrate more of its own proprietary battery technologies and confer both safety and cost advantages to its battery products. At the moment, Tesla is also actively developing ESS sites; the company is expected to derive competitive advantages from its minimal ESS construction time.

Toshiba’s high quality products are used in many demonstration zones in Japan, Europe, and North America. This, along with the company’s lineup of SCiB Rechargeable Batteries, means Toshiba is now the gold standard in demonstration zone suppliers. As one of the early ESS developers, BYD is able to maximize its presence in the EV and ESS markets owing to the superior stability of its LFP batteries.

TrendForce believes that, as the production capacity of the abovementioned five battery manufacturers continues to expand, BESS applications and EVs will become two pillars supporting the lithium-ion battery industry. Continued technical development means lithium-ion batteries will contain less and less amounts of rare materials, such as cobalt, and uncertainties in lithium-ion battery components will clear up in the future as well. Unlike the increasingly popular EV, BESS is integrated into various electrical grid systems, such as smart grids, with a high level of product mix but low volumes. Therefore, TrendForce expects the BESS industry to yield higher margins than the EV industry in the next five years.

- EnergyTrend 2020 Lithium-ion Battery Energy Storage Market Trend -
Architecture and Definition of ESS
  • Development Purpose and Significance of ESS
  • Type and Architecture
  • Energy Storage Trend

Release Date: January 31, 2020

Format: PDF

Language: Chinese / English

Analysis of ESS Architecture and Application Characteristics of Smart
  • Development Purpose and Significance of Smart Grid
  • Type and Architecture of Smart Grid
  • Smart Grid Trend
Analysis of Key Components for BESS
  • Architecture and Function of BESS
  • Global Market Scale of ESS (2020~)
  • Case Study: BESS Battery
  • BESS Battery Type and Application Trend
  • Global Market Scale of PCS (2018-2028)
  • Case Study: Manufacturer of PCS
  • PCS Type and Application Trend
  • PMS Application Feature
  • Case Study: Manufacturer of PMS
Business Models and Cases for BESS
  • ESS Business Model
  • Case Studies in North America, Europe and Asia
Incentive Policies of BESS
  • Market Drivers in Each Country
  • Market Drivers in Europe, America and Asia
  • Analysis of BESS Safety Incident in Korea
Please feel free to contact us for the further inforamtion.
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