CNESA Storage Market Analysis Q2 2017

Global Market Scale

In Q2 of 2017 49.6 MW of newly added electrochemical energy storage began operations across the globe. This marks a 41% decrease compared to the same period of last year, and a 59% decrease compared to Q1 of 2017. Newly operating projects were located in China, US, Netherlands, Tanzania, Myanmar and the Maldives. Of these, China’s newly added capacity was the largest, representing 43% of added capacity.

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In terms of project applications, ancillary services projects took up the largest share at 28 MW, or 56% of newly installed capacity by application. This amount is a 42% crease since the same period last year, and a 72% decrease since Q1 of 2017.

From a technology perspective, projects were predominantly powered by Li-ion and lead-based battery technologies. Li-ion took up the largest share of 43.2, or 87% of installed capacity, a 35% decrease since the same period last year and a 64% decrease since Q1 of 2017.

Global Market Movements

As before, the US, Australia, and Europe are hotbeds of market movement.

The US states of California, Maryland, and Nevada issued several storage-related policy documents in conjunction with user-sited storage, renewables grid integration, tax policy, and demand response. Australia issued standards with respect to Solar + Storage. In Europe, the Czech Republic issued its first solar + storage subsidy plan. Italy and England both issued standards and energy system reforms allowing energy storage to participate in the electric grid. Argentina and South Africa also issued plans for GW-scale solar + storage plants to reduce fossil-fuel dependency, resolve problems with integrating renewables into the grid, as well as provide power for remote regions.


China Market Scale

In Q2 of 2017, China added 21.1 MW of newly operating electrochemical storage, a 65% increase compared to the same period last year and an increase of 1588% compared to Q1 of 2017. 91% of newly added capacity was located in the Northeast region.

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In terms of project applications, 85% of added capacity was used for ancillary services applications, with the entirety of these projects using Li-ion battery technology. When considering all project applications, Li-ion technology similarly was dominant, used in 88% of all project types.  

China Market Movements

On a national level, an official list was released outlining sanctioned microgrid demonstration projects. Of the 28 projects in total, 25 included energy storage equipment. On local and provincial level, provincial level ancillary service market operating rules were published as well as provincial level storage equipment construction standards.

Project located in the Northeast Grid were concentrated around Shanxi and Beijing. The Shanxi projects focused on examining applications for energy storage in thermal power plants as a means to respond to AGC modulation commands. The Beijing projects were installed in commercial buildings to reduce electricity bills and provide a source of backup power.