United Kingdom Energy Storage Systems Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)
The market is segmented by Type (Batteries, Pumped-storage Hydroelectricity (PSH), Thermal Energy Storage (TES), Flywheel Energy Storage (FES), and Other Types), Application (Residential, Commercial and Industrial).
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Scope of the Report
Key Market Trends
TABLE OF CONTENTS
2016 - 2026
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The market for energy storage systems in the United Kingdom is expected to grow at a CAGR of approximately 12% during the forecast period of 2020 – 2025. Factors such as 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 market in the country. However, ambiguity in the EU legislation related to energy storage systems is forcing the network operators to refrain from using the ESS, which, in turn, is restraining the market growth.
Batteries energy storage systems segment is expected to witness significant demand owing to the ongoing and upcoming energy storage projects in the United Kingdom.
Increasing adoption by commercial and industrial sector is likely to create huge opportunities for the market in coming years.
Scope of the Report
The United Kingdom energy storage systems market report include:
Pumped-storage Hydroelectricity (PSH)
Thermal Energy Storage (TES)
Flywheel Energy Storage (FES)
Commercial and Industrial
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Key Market Trends
Batteries Segment to Witness Significant Demand
As the battery technology prices have declined, planning applications for energy storage systems in the United Kingdom have soared from 2 MW in 2012 to 6,874 MW in 2018.
The largest battery energy storage project built in the United Kingdom was completed in July 2018. The 49.9 MW Pelham project was constructed by British Solar Renewables EPC (BSR EPC), for SMA Sunbelt Energy, a solar technology company in the United Kingdom. The project comprised of 27 inverters, 12 km of cable, and 150,000 Li-ion battery cells.
In Jan 2019, NEC delivered Orsted's (formerly known as DONG Energy) first 20 MW standalone grid battery project in Liverpool, England. This project is expected to provide services to the United Kingdom's National Grid to support grid stability during shifts in power generation. This newly completed 20 MW Carnegie Road battery project consists of three battery containers and associated power conversion systems, both provided by NEC Energy Solutions.
Battery storage and demand-side response won more than 500MW of contracts in the T-1 Capacity Market auction, in February 2018. Over the last two years, the United Kingdom Power Networks received 667 connection applications, totaling to 12.2GW for energy storage (almost all batteries).
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. Therefore, upcoming energy storage projects in the country, along with the need to integrate the renewable sources with the national grid, is expected to drive the demand for energy storage systems over the forecast period.
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Growth in Renewable Sector to Drive Energy Storage Systems
The renewable power is an intermittent energy source. Therefore, in order to maintain 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 20% of the United Kingdom’s electricity, and European Union targets means that this is likely to increase to 30% by 2020. From 2020, renewable energy will continue to be 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 2018, renewable energy accounted for around 31.6% of the electricity produced in the United Kingdom, surpassing other sources, such as nuclear, coal, and oil. The carbon dioxide emissions went down by 2.3% in the same year.
Like many of 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.
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The United Kingdom energy storage systems market is fragmented. The key players include Tesla Inc, Contemporary Amperex Technology Co Ltd, Voith GmbH & Co. KGaA, Siemens Gamesa Renewable Energy SA, and General Electric Company.