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4Q 2023

Hybrid Solar Plus Storage Technology Markets

Hybrid Solar Plus Storage and Storage Plus Applications: Global Market Analysis and Forecasts, 2023-2032

Intermittent renewable energy generation technologies via solar PV have surged to capture a record share of global electricity generation and continue to expand. Technology improvements, cost reductions, and policy support and shifts underpin this growth. Record breaking renewable electricity capacity installations in 2022 have aided in global renewable energy supply increasing by about 8%. Long-term contracts, priority access to the grid, and increased funding suggest that the deployment of intermittent renewable energy generation technologies will continue to expand rapidly in the coming decade. Given the variability of power supply from solar PV, integrating increased levels of renewable energy onto electricity grids reliably and cost-effectively will require solutions that improve grid flexibility.

The forecasts in this Guidehouse Insights study, which are segmented by region include technology pricing. All forecasts cover the 10-year period from 2023 to 2032. These forecasts have been revised from 2021 projections to account for new projects in the regional pipeline, lingering disruptions from the COVID-19 pandemic, the launch of the Inflation Reduction Act (IRA), and current economic hardship factors.

The North American market is currently the largest globally for renewables plus storage and projected to remain so through at least 2032. Leading the region’s growth are new solar plus storage projects in the US, and policy changes that encourage growth of hybrid systems. In 2023, North America is expected to see 11,881 MW of new energy storage system (ESS) capacity installed alongside solar PV, and 27,259 MW of total utility-scale power capacity. Through 2032, Asia Pacific is expected to remain the second largest market overall with an annual 13,488 MW of new solar PV plus storage capacity.

Pages 41
Tables | Charts | Figures 25
  • What are the primary applications of hybrid solar plus storage systems?
  • What benefits do hybrid solar plus storage systems offer the grid and ISO?
  • Which companies are pushing market growth?
  • What are the key generation sources for inverters and battery packs for hybrid solar plus storage systems?
  • What are the pros and cons of hybrid solar plus storage systems?
  • What standing challenges exist for the expansion of hybrid solar plus storage systems?
  • Which regions are most competitive on the market?
  • Hybrid plus solar storage system companies
  • Solar project developers
  • Battery energy storage systems providers
  • Energy storage systems developers
  • Inverter and PV developers
  • Large industrial power users
  • Government agencies
  • Non-governmental organizations
  • Investor community

1. Executive Summary

1.1      Market Introduction

1.2      Market Forecasts

2. Market Issues

2.1      Drivers

2.1.1     Hybrid Solar Plus Storage Purchase Agreement Prices

2.1.2     Policy Changes to Energy Codes

2.1.3     Microgrids in Remote Regions

2.1.4     Fossil Fuel Power Plant Retirements

2.1.5     Responsible Land Use

2.1.6     Utility Planning Challenges

2.2      Barriers

2.2.1     Forecasting

2.2.2     Market Mitigation and Physical Withholding

2.2.3     Market Participation and Scheduling Software

2.2.4     Capacity Accreditation

2.2.5     Offer Parameters

2.2.6     Interconnection

2.2.7     Resource Planning and Distribution

2.2.8     Impacts from Economic Hardship

2.3      Storage Plus Applications

2.3.1     Curtailment and Transmission Congestion

2.3.2     Energy Price Arbitrage

2.3.3     Renewables Output

2.3.4     Capacity Markets and Resource Adequacy

2.3.5     Ancillary Services

2.3.6     Remote Microgrids and Support for Island Regions

3. Industry Value Chain

3.1      Li-ion Battery Value Stream Components

3.1.1     Upstream Impacts

3.1.2     Midstream Impacts

3.1.3     Downstream Impacts

3.2      Solar Inverter Value Chain

3.2.1     Upstream Impacts

3.2.2     Midstream Impacts

3.2.3     Downstream Impacts

3.3      Grid Storage Project Technology Comparisons

4. Market Forecasts

4.1      Methodology and Assumptions

4.1.1     Lingering COVID-19 Pandemic Impacts

4.2      Forecasts by Region

4.3      Solar Plus Storage Revenue Projections

5. Conclusions and Recommendations

5.1      Three Big Takeaways

5.2      Recommendations for Utilities

5.3      Recommendations for Regulators

6. Acronym and Abbreviation List

7. Table of Contents

8. Table of Charts and Figures

9. Scope of Study, Sources and Methodology, Notes

  • Utility-Scale ESS CAPEX Assumptions by Technology, World Market Averages: 2023-2032
  • Annual Installed Utility-Scale Solar PV Plus Storage Hybrid/Colocated Power Capacity by Region, World Markets: 2023-2032
  • Annual Installed Utility-Scale Power Capacity by Region, World Markets: 2023-2032
  • Annual Installed Utility-Scale Solar PV Plus Storage Hybrid/Colocated Energy Capacity by Region, World Markets: 2023-2032
  • Annual Installed Utility-Scale Solar PV Plus Storage Revenue by Region, World Markets: 2023-2032
  • Annual Installed Utility-Scale Solar PV Revenue by Region, World Markets: 2023-2032
  • Li-ion Battery Value Chain
  • Global Battery Material Mining and Refining Capacity
  • AC-Coupled System
  • DC-Coupled System
  • AC-Coupled Utility System
  • Inverters Industry Value Chain
  • Utility-Scale ESS CAPEX Assumptions by Technology, Base Case, Average Installed Costs, World Markets: 2023-2032
  • Utility-Scale Li-Ion Battery System Pricing by Cost Component, 20 MW / 20 MWh, Base Case, Average Installed Costs, World Markets: 2023-2032
  • Annual Installed Utility-Scale Solar PV Power Capacity by Region, World Markets: 2023-2032
  • Annual Installed UES Power Capacity by Region, All Technologies and Application Segments, World Markets: 2023-2032
  • Annual Installed UES Energy Capacity by Region, All Technologies and Application Segments, World Markets: 2023-2032
  • Annual Solar PV Deployment Revenue by Region, World Markets: 2023-2032
  • Annual Installed UES Deployment Revenue by Region, All Technologies and Application Segments, World Markets: 2023-2032
  • Annual Installed Utility-Scale Solar PV Plus Storage Hybrid/Colocated Power Capacity by Region, World Markets: 2023-2032
  • Annual Installed Utility-Scale Solar PV Plus Storage Hybrid/Colocated Energy Capacity by Region, World Markets: 2023-2032
  • Annual Installed Utility-Scale Solar PV Plus Storage Hybrid/Colocated Revenue by Region, World Markets: 2023-2032
  • Annual Installed Utility-Scale Power Capacity by Region, World Markets: 2023-2032
  • Annual Installed Utility-Scale Energy Capacity by Region, World Markets: 2023-2032
  • Annual Installed Utility-Scale Solar PV Revenue by Region, World Markets: 2023-2032
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