Distributed Energy Storage System Market Insights

The Distributed Energy Storage System (DESS) is a method of storing energy for later consumption. The DESS can be installed in both residential and commercial settings. It costs roughly $100 per kWh to run. The global need for DESS is increasing. Will it increase as more renewable energy sources are implemented?

Distributed Energy Storage Market 2022-2032

Renewable energy sources like solar, wind, and geothermal power are becoming more and more popular in the United States, which is good news for the Distributed Energy Storage Market. By 2032, the market should be worth about US$ 2.6 billion. China, which has the most people in the world, also has a fast-growing demand for energy storage systems. Rapid urbanization and industrialization in the country have increased the need for energy. In 1998, the country started using systems that store energy in many different places. Because of this rise in energy use and concerns about the environment, distributed energy storage systems were made quickly.

Smart grids, which use a lot of different technologies together, are proving to be very good at making and distributing energy. Distributed energy storage systems help these smart grids work by keeping the amount of power being used and made in the grid in balance. China, India, and South Korea, as well as North America and other parts of the world, will need more energy storage systems.

As new rules are put in place, energy storage is likely to continue to grow. With the help of new rules, grid operators will be able to put off transmission upgrades, use intermittent resources, add more generating capacity to handle peak loads, and make the grid more reliable and less likely to break down. The government is also helping to support distributed energy storage and will continue to do so in the future.

Why is the need for DESS growing around the world?

Distributed energy storage system (DESS) is becoming a more popular way to improve power grids, and it has a lot of benefits. Some of these things are low lead times, scalable deployment, and low marginal costs. Because of these benefits, DESS is as cost-effective as other ways to store energy. This means that it is a better choice for grid owners than spending a lot of money to upgrade the grid.

With plans to double installed capacity in Europe by 2022, the REPowerEU plan from the European Commission is expected to help the storage industry grow. Even though the plan doesn’t set a specific goal for energy storage, it does say that the need for flexible power solutions and storage assets will be driven by the rising renewable supply goals. It also promises to make it easier to get permission for PV systems and storage, which will help both large-scale and small-scale energy storage projects grow.

The United States has the largest market for storing energy on its own. But China is likely to pass the US in the next ten years. China’s government has said that by 2025, 30GW of energy storage will be put in place. Germany and Australia are also major markets. Also, more money will be put into energy storage technology in Africa and South America.

By helping early deployments of DESS technologies, the government is making the market less risky for investors and encouraging the growth of commercial markets. For example, the United Kingdom will start a $100 million competition to show how DESS works in early 2021.

Will more energy from renewable sources help the market grow?

Renewable energy has been growing in the past few years. There are now goals for renewable energy in 165 countries and 600 cities. The goal of these policies is to encourage the development of renewable energy and make sure there is enough energy for everyone. The global market for renewable energy should be able to grow thanks to these policies. A new focus on energy security, especially in the European Union, is pushing policymakers to speed up the use of renewable energy sources in a way that has never happened before.

The use of renewable energy is likely to grow in all areas, including North America. With a planned increase of over 10% over the next ten years, China is the leader in adding renewable capacity. On the other hand, India is expected to add twice as much capacity over the next five years. In addition to China, the United States and Europe are also expected to speed up their use of solar PV and wind power. Together, these four markets are expected to make up almost 80% of all new renewable energy capacity around the world.

To make this growth happen, governments need to make it easier for people to use these technologies. Every country should put in place incentives to speed up deployment, and governments should create strict rules that apply to all end-use sectors. As the market grows, governments will have to make the electric grid more flexible, put money into long-term transmission lines, and come up with new ways to store energy.