North America, Western Europe, and Asia Pacific Are Expected to Make up Nearly 99% of the 2021 Global Distributed Energy Storage Market
Much of the early success in these markets is the result of financial incentives and government support for energy storage and other distributed energy resources
A new report from Guidehouse Insights provides global forecasts for annual deployments of new distributed energy storage (DES) projects in terms of power capacity, energy capacity, and project deployment revenue, through 2030.
2020 proved transformational for the DES industry thanks to cost and performance improvements, an uptick in renewable generation capacity, grid-modernization plans, and improved opportunities for wholesale market participation. Additionally, national and local government financial incentives and deployment mandates, as well as phase-outs of feed-in tariffs (FITs) or net metering, helped drive the market. Rapid growth is expected to continue in 2021, with growth concentrated in three key regions. According to a new report from Guidehouse Insights, North America, Western Europe, and Asia Pacific are expected to account for around 98.4% of the global DES market in 2021.
“Much of the early success in these markets is the result of financial incentives and government support for energy storage and other distributed energy resources (DER),” says Ricardo F. Rodriguez, research analyst with Guidehouse Insights. “Incentives and subsidies in each of these three markets, paired with support from utilities, have made DES an economical investment for many customers.”
Between 2021 and 2030, the DES market is projected to expand into an increasing number of countries as utilities charge customers based on usage patterns, relay accurate price signals, and design rate structures that reflect the fixed and variable costs of providing electric service. From time-of-use (TOU) rates to demand charges to real-time pricing, these rate structures are expected to be key to increased DES adoption. In addition, new market participation models that enable system owners to capture multiple value streams are emerging as important enablers of continued DES growth around the world.
The report, Market Data: Distributed Energy Storage and Solar PV, provides global forecasts for annual deployments of new DES projects in terms of power capacity, energy capacity, and project deployment revenue. These forecasts are segmented by global region, technology, and the application or services that the system is intended to provide. In addition, this report provides a review of the market issues surrounding DES. Global forecasts for DES from 2021 to 2030 are provided. An executive summary of the report is available for free download on the Guidehouse Insights website.
*The information contained in this press release concerning the report, Market Data: Distributed Energy Storage and Solar PV, is a summary and reflects the current expectations of Guidehouse Insights based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Guidehouse Insights nor Guidehouse undertakes any obligation to update any of the information contained in this press release or the report.