The China Energy Storage Market is set to grow from its current market value of more than $700 million to over $6 billion by 2024; as reported in the latest study by Global Market Insights.
China’s energy storage market size is set to witness robust growth on account of a rapidly growing ancillary service industry coupled with ongoing investments towards smart-grid infrastructure development.
Furthermore, rising deployment of energy storage devices aimed at enhancing the grid stability as a countermeasure to the effects of extensive penetration of intermittent power from renewables will augment the industry size.
Declining technology costs in conjunction with the development of new technologies and the advancement of existing systems will positively influence China’s energy storage market size.
Lithium-ion batteries have witnessed a drop of over 50% in per unit cost in the last few years and will continue to follow the trend. A reformative business scenario along with improving economies of scale across the battery manufacturing industry will further stimulate the industry size.
Shifting focus towards limiting carbon emissions to curb the consequence of global warming, coupled with rising implementation of supportive legislative endeavors, will boost China’s energy storage market growth.
Nonetheless, ongoing reduction in government subsidies on renewables may impact the industry, but the subsidy benefits losses may be compensated by reducing technology prices.
China’s flow vanadium energy storage market is projected to exceed $3 billion by 2024. Abilities to offer virtually unlimited storage capacity, long scale duration, rapid response time, and negligible self-discharge are some of the key features which make the technology suitable for large-scale renewable integration applications over its available alternatives.
Furthermore, vast reserves of vanadium in the country may imply lower prices, minimal currency risks and ease of availability for the manufacturers, which will propel the industry growth.
China’s lithium-ion energy storage market is set to witness vigorous growth on account of continued reduction in technology costs driven by economies of scale across battery manufacturing. High energy density, low maintenance, and high coulombic efficiency are the prominent features that will strengthen the product penetration.
China’s ancillary services energy storage market size is projected to witness exponential growth owing to rising need for grid resilience and stability, primarily driven by continued substitution of thermal power with renewable power sources.
Additionally, legislative reforms favouring the development of ancillary services industry across the country, particularly in the “Three North Region” will further enhance the industry landscape.
SOURCE: SMART ENERGY