United Kingdom Energy Storage Systems Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The United Kingdom Energy Storage Systems Market is Segmented by Type (Batteries, Pumped-storage Hydroelectricity (PSH), and Other Types) and Application (Residential, and Commercial and Industrial (C&I)).

Market Snapshot

United Kingdom Energy Storage Systems Market Overview
Study Period: 2018- 2026
Base Year: 2019
CAGR: >5 %

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Market Overview

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 market was negatively impacted due to the COVID-19 pandemic in 2020, and the impact was mainly on the supply of raw materials used for manufacturing batteries, like lithium-ion and lead-acid, used as energy storage systems. However, 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.

Scope of the Report

The United Kingdom energy storage systems market report includes:

By Type
Batteries
Pumped-storage Hydroelectricity (PSH)
Other Types
By Application
Residential
Commercial and Industrial (C&I)

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Key Market Trends

Batteries Energy Storage Systems 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.
  • According to the Renewable UK, as of 2020, there more than 16.1 GW of battery storage capacity operating, under construction, or being planned in the United Kingdom across 729 projects.
  • 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 27 inverters, 12 km of cable, and 150,000 Li-ion battery cells.
  • In January 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 500 MW 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 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, 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 energy storage systems over the forecast period.
United Kingdom Energy Storage Systems Market Latest Trends

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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 20% of the United Kingdom’s electricity, and European Union targets mean that this is likely to increase to 30% by 2020. 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.
United Kingdom Energy Storage Systems Market Share

Competitive Landscape

The United Kingdom energy storage systems market is fragmented. Some of the key players operating in the market include Tesla Inc., Contemporary Amperex Technology Co. Ltd, Voith GmbH & Co. KGaA, Siemens Gamesa Renewable Energy SA, and General Electric Company.

Recent Developments

  • In November 2020, the United Kingdom's one of the largest battery energy storage systems is located in Thurcroft, South Yorkshire, started its commercial operations. The 75 MWh, energy storage system, is now live in the Balancing Mechanism, a key tool National Grid ESO uses to balance supply and demand on the electricity system in real-time.
  • The Gresham House Energy Storage Fund (GRID), one of two dedicated energy storage investment funds listed on the London Stock Exchange, stated that the impact of COVID-19 remained low, and despite some slowdown in connections for a couple of projects, it remains optimistic.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Scope of the Study

    2. 1.2 Market Definition

    3. 1.3 Study Assumptions

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET OVERVIEW

    1. 4.1 Introduction

    2. 4.2 Energy Storage Installed Capacity and Forecast, in GW, till 2026

    3. 4.3 Recent Trends and Developments

    4. 4.4 Government Policies and Regulations

    5. 4.5 Market Dynamics

      1. 4.5.1 Drivers

      2. 4.5.2 Restraints

    6. 4.6 Supply Chain Analysis

    7. 4.7 PESTLE ANALYSIS

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Type

      1. 5.1.1 Batteries

      2. 5.1.2 Pumped-storage Hydroelectricity (PSH)

      3. 5.1.3 Other Types

    2. 5.2 By Application

      1. 5.2.1 Residential

      2. 5.2.2 Commercial and Industrial (C&I)

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Strategies Adopted by Leading Players

    3. 6.3 Market Share Analysis

    4. 6.4 Company Profiles

      1. 6.4.1 Tesla Inc.

      2. 6.4.2 Contemporary Amperex Technology Co. Ltd

      3. 6.4.3 Siemens Gamesa Renewable Energy SA

      4. 6.4.4 Voith GmbH & Co. KGaA

      5. 6.4.5 Electricite de France SA (EDF)

      6. 6.4.6 General Electric Company

      7. 6.4.7 BrightSource Energy Inc.

      8. 6.4.8 ABB Ltd

      9. 6.4.9 NGK Insulators Ltd

      10. 6.4.10 UniEnergy Technologies LLC

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability

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Frequently Asked Questions

The United Kingdom Energy Storage Systems Market market is studied from 2018 - 2026.

The United Kingdom Energy Storage Systems Market is growing at a CAGR of >5% over the next 5 years.

Voith GmbH & Co. KGaA, Siemens Gamesa Renewable Energy SA, General Electric Company, Tesla Inc., Contemporary Amperex Technology Co. Ltd are the major companies operating in United Kingdom Energy Storage Systems Market.

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