A storage market expansion of over 700% in the next half decade is predicted by analysts at Wood Mackenzie, driven by the need for gird resiliency and reliability.
Although, while the projection for growth of this sector is clear, storage developers will face a lot of challenges in 2020.
Experts say developers will have to confront safety regulations and market uncertainty challenges especially following the disappointing rejection for tax credit stand-alone storage systems by the US House of Representatives in December.
"One of the big challenges that we're facing is making sure that energy storage is accounted for on a level playing field as the other clean technologies, and that's quite simply getting it included in the ITC," – Kelly Speakes-Backman, CEO Energy Storage Association (ESA)
Going into 2020, the focus remains on giving storage systems an equal playing field as other clean energy technologies, pushing legislation and incentives.
As resources such as coal move into a scheduled retirement, utilities will likely look to storage as a replacement and a method to combat the intermittency of solar and wind resources, ensuring an injection of clean energy into the grid when the sun isn’t shining.
State policies will also contribute to market growth in 2020 looking at storage deployment. 2019 seen huge success in this department as 32 states currently include storage in their planning requirement and more than 20 states have passed some sort of legislation providing incentives, targets or planning rules for storage. This is a great achievement and the foundation for further progress.
Declining battery costs is to be a continued driver in the growth of the energy storage sector with forecasts expecting costs to drop by 10-15% annually in 2020 through to 2024.
2019 was a good year for energy storage with big wins such as states making deployment a priority, utilities rolling out pilot programs and battery prices plunging. While there are many interesting challenges, the resilience and reliability of the energy storage sector are key factors in its projected growth in 2020 and beyond!
Going into 2020, the focus will remain on giving storage systems an equal playing field as other clean energy technologies, she said, including a push to pass legislation incentivizing stand-alone energy storage.