According to the survey agency, the total capacity of the battery storage system deployed in Europe exceeds 5gwh, and the capacity of the battery storage system deployed in 2021 may nearly double that in 2020.
The development of European energy storage market has seen some highlights last year, although the energy storage industry is adversely affected by the coronavirus epidemic. According to the quarterly report of European energy storage market monitoring recently issued by the European Energy Storage Association (ease) and delta EE, the industry analysis and Research Institute, Europe deployed battery storage system with a storage capacity of 1.7gwh in 2020, and in 2019 The deployment volume of about 1GWh has been significantly improved.
The survey shows that Slovenia has recently deployed two large-scale commercial and industrial (c&i) battery storage systems, using a total of 28mwh Tesla Megapack battery storage system, which has brought significant growth to the commercial and industrial (c&i) market in Eastern Europe
The report predicts that, driven by European countries' goals and commitments to renewable energy and the opening of various grid service market opportunities, the total storage capacity of the battery storage system deployed in 2021 is about 3gwh. Since 2016, the number of European battery storage systems deployed and installed capacity is growing, said Joan Coelho, an analyst at Delta EE, in a webinar.
The cumulative installed capacity in Europe has increased from about 0.55gwh in 2016 to 5.26gwh by the end of 2020. If the performance of this year is as strong as predicted, the cumulative installed capacity of the battery storage system by 2021 will exceed 8.2gwh. The grid side energy storage system will account for more than 50% of the European energy storage market. In 2021, the trend of grid side energy storage system dominating the market seems to continue. With the opening of income sources, European countries have strengthened their commitment to renewable energy while striving to achieve the clean energy goal of 2030.
By contrast, wood Mackenzie, an analysis agency, found that the United States deployed about 1464mw /3487mwh battery storage system in 2020, more than the total of the previous six years. The company previously said in another study that although Europe will surpass China and the United States in terms of renewable energy capacity growth, it is far behind the United States and China in recognizing the importance of energy storage systems in this transformation. In addition, guidehouse insights, another research firm, expects that by 2023, the Asia Pacific region, driven by China's accelerated deployment of renewable energy, will become a larger grid scale energy storage market than in North America.
According to media reports, the scale of the German residential energy storage market continues to grow, with the cumulative deployed energy storage capacity reaching about 2.3gwh, covering more than 300000 households. The quarterly report of "European energy storage market monitoring" shows that Germany is expected to continue to occupy the dominant position in the European housing market. In 2020, the accumulated energy storage capacity of residential energy storage system deployed in Germany is about 616mwh.
The report also analyzes the significant growth patterns of European markets. With Spain lifting a controversial punitive tax measure in 2020, which imposes punitive fees on households who use their solar power facilities rather than sending them to the grid, the capacity of the Spanish residential battery storage market has jumped from about 4mwh in 2019 to 40mwh in 2020, up 10 times. There are also some countries and regions where subsidies for the deployment of solar power facilities and storage systems have also had an impact. In contrast, the French residential solar energy + energy storage market has significantly reduced by about 75% between 2019 and 2020, mainly due to the impact of the coronavirus epidemic blockade, only about 6000 residential solar energy storage systems were installed last year.
In terms of grid side energy storage deployment, the UK may still be the largest energy storage market, and the UK will deploy a battery storage system with installed capacity of about 941mw in 2020. Solar media market research recently held a webinar describing 2020 as the "battery year" in the UK, and a large number of battery storage projects will also be launched in 2021. Italy and Ireland will be the highest growth rate of energy storage markets in Europe this year, according to delta EE and the European energy storage association. Italian grid operator terna is opening up the ancillary service market. Ireland has opened its auxiliary service market. Some battery storage projects have been put into operation, including a 100MW battery storage system operating in DS3 power grid service market in Ireland.
In addition, it is worth noting that in several Nordic countries, with the online operation of renewable energy projects such as wind power generation in Finland and the mixed deployment of some of its hydropower stations and battery storage systems in Sweden, Nordic countries are accelerating the deployment of energy storage systems and seeking to deploy battery storage systems as measures to alleviate grid congestion and lack of access between power generation facilities and loads. Overall, the duration of discharge of grid side battery storage projects deployed in Europe is growing.
"We expect that the European energy storage market will grow faster due to increasing opportunities to enter the storage market, especially the user side energy storage system, and the increasing ability of battery storage systems to gain value from multiple markets, coupled with the support of governments for the green recovery program," said Jon Ferris, head of energy storage and flexibility business at Delta EE
In addition, the EU's economic recovery plan to deal with the epidemic is likely to invest public funds in clean energy technology, while energy storage technology is the beneficiary. The plan could invest as much as 1.8 trillion euros, and about 37 per cent of the money must be spent on Climate Investment and reform. These plans will be approved by April this year for implementation by 2026.
Although the EU green agreement and clean energy package remain one of EU policy makers' priorities, climate objectives and strategies ranging from battery supply chain regulation to hydrogen storage are in progress, Britney, head of policy of the European Energy Storage Association Elzarei said at the webinar that the implementation of the clean energy package by EU Member States is very different, and the EU still lacks a clear strategy to support the promotion of energy storage systems. Several members of the European Parliament also said last year that batteries, hydrogen and other energy storage technologies should be a key issue in EU energy policy, as they are writing a report on the important role of energy storage systems in energy networks.
Another major obstacle to the deployment of energy storage systems in Europe is that in many countries, including Germany, there is still a double charge system using the grid. In other words, the energy storage system must pay once for power from the grid and then pay for power supply to the grid again. But the report acknowledges that the reform of these charging systems is one of the positive measures taken by Europe in the energy storage industry.