Grid Energy Storage Market

Grid energy storage is defined as technologies linked to the power grid that capture energy and recycle back to the grid whenever a more favourable time arises-for instance, during night when no sunlight is available and also in case of weather events that cut the electricity source. Grid energy storage has a central role in the Net Zero Emissions by 2050 Scenario in that it provides several critical system services in the short term such as short-term balancing, operating reserves, ancillary services to ensure the grid stability and postponing investment in new power lines by transmitting and distributing extra electricity to areas where it is needed, and in the long term, the idea of energy storage and restoration of the grid at the time of a blackout.

Based on Storage technology segment, the Grid Energy storage market has been categorized as Pumped Hydroelectric storage, Batteries (lithium or Acid lead), Compressed air energy storage, Thermal storage, and others (super capacitors, Hydrogen energy storage, and Flywheel energy storage). Pumped Hydroelectric storage and Compressed air energy storage are large-scale technologies capable of discharge times of tens of hours and power capacities up to 1 GW but are geographically limited. Pumped Hydroelectric storage systems lift water from a lower reservoir to a higher one and then release it by running it through a turbine using gravity transforming potential energy into electricity when required. Compressed air energy storage systems compress air in an underground cavern. The pressurized air is heated and expanded in a natural gas combustion turbine, driving a generator. As of 2023, the U.S. only had one compressed air energy storage plant operating, a 110 MW plant. Thermal storage is a low-cost, long-duration grid-scale storage technology making deep decarbonization through more penetration of renewable resources possible. It works somewhat like a battery, allowing electricity to flow in and out of the system during charging and discharging. Thermal energy storage permits the storage of surplus thermal energy for subsequent reuse at small scales, that is, individual process or district/ regional levels.

In End User segment, the Grid Energy storage market has been segmented as Grid operators, Energy providers, and Utilities. Utilities grid energy storage solutions have the possibility to store excess energy produced by renewable sources to be used when demand is high. Hence, this eased off the pressure on the National Grid and would help in providing a well-rounded renewable energy solution to the market. GESS provides peak load management, frequency regulation, voltage control, renewable energy integration, black start capability, and ancillary services besides other benefits to grid operators. Meeting all of these challenges thereby leads to a reliable, stable, and efficient power grid. Diversity benefits are provided to the energy providers through energy storage systems. They help improve grid integration, manage peak loads, create extra revenues, increase customer reliability, and defer capital expenditures. These solutions eventually lead to the optimal opportunities available for energy suppliers in optimizing their operations, cost savings, and fulfilment of the changing needs in the energy market.

A few of the players operating in the Grid Energy storage market include NextEra Energy (US), GE Vernova (US), MAN Energy Solutions (Germany), MGA Thermal Pty Ltd (Australia), Energy Vault, Inc. (Switzerland), and Tesla (US) among others.

Key Questions Addressed by the Report

Frequently Asked Questions (FAQs)

• What is the current size of the Grid Energy storage Market?
• What trends could be witnessed over the next five to ten years?
• What are the major drivers for the Grid Energy storage Market?
• Which is the largest segment by End User during the forecasted period in the Grid Energy storage Market?
• Which is the fastest-growing region during the forecasted period in the Grid Energy storage Market?
• What will be the revenue pockets for the Grid Energy storage Market in the next five years?