Grid Scale Stationary Battery Storage Market Analysis

Grid Scale Stationary Battery Storage Market Analysis

Grid scale stationary flow battery storage market is set to register over 32% growth rate through 2032, on account of its low costs, long life span, and growing consumer dependence on energy storage systems. Unlike their lithium-ion counterparts, flow battery systems are low-risk for fire or explosion and are advantageous in terms of commercialization and safety recycling. Despite these safety features, the self-discharge rate is relatively high, leading to low efficiency and disruptions in manufacturing expansion. Easy customization and capacity attributes may, however, contribute to product consumption.
 

In terms of application, the black start services segment is poised to record more than 2% share of the grid scale stationary battery storage market by 2032. The requirement for resilient power systems has increased owing to frequent power failures and electricity outages. In the U.S., for example, power outages have been escalating, given the aging energy infrastructure and extreme weather conditions. Since black start restoration services can power electric networks and generators without the use of external transmission lines, the rising instances of power outages will proliferate system adoption.
 

The frequency regulation application segment held over 80% of the grid scale stationary battery storage market share in 2022, considering the increasing acceptance of battery energy storage systems as a reliable option to improve frequency deviation in grid networks. These systems can be utilized to address energy or demand imbalances that change the frequency of power moving through transmission lines. The mounting penetration of renewable energy and the introduction of favorable market rules to improve access to batteries will hasten product development for frequency regulation applications.
 

Asia Pacific grid scale stationary battery storage market value is anticipated to reach nearly USD 340 billion by 2032. The shifting preference from conventional power to clean energy sources to limit carbon dioxide emissions and the rapid electrification of rural areas are some prominent growth drivers. As a part of the transition to a low-carbon economy, the share of renewable energy must grow from 2% in 2020 to 18% by 2030 in Southeast Asia, as per the IEA. These factors will escalate the adoption of grid-scale energy storage systems since they play a crucial role in achieving net-zero targets in the region.