Europe’s cumulative electrochemical energy storage installation capacity has past the 5GWh mark and this year is likely to be double from 2020’s figures.
Last year there was still some bright spots although the industry was negatively impacted by the COVID-19 pandemic and 2020’s annual installation figures of 1,700MWh across the continent were a marked improvement on around 1GWh of installs during 2019, according to the latest edition of the quarterly ‘European market monitor on energy storage,’ produced by industry group European Association for Storage of Energy (EASE) together with industry analysis and research group Delta-EE.
The report forecasts that about 3,000MWh of installations will be completed in 2021, driven forward by national targets and commitments to renewable energy as well as the opening up of opportunities across various grid services markets. Delta-EE analyst Joao Coelho said in a webinar to present the report’s key findings that since 2016, there has been “continuous growth” in the number of installations and installed capacity.
Europe’s cumulative installations have rocketed from about 0.55GWh of electrochemical storage in 2016 to 5.26GWh by the end of 2020, and if this year’s performance is as strong as predicted, will take cumulative installs past 8.2GWh. The front-of-the-meter (FTM), utility-side segment of the market contributed more than 50% of installed capacity. That trend of FTM deployments dominating the market looks set to continue in 2021, with revenue streams opening up and various countries strengthening their renewable energy commitments as they work toward 2030 targets.
This week, Energy-Storage.news reported that Germany’s residential energy storage market continues to grow, with cumulative capacity reaching about 2.3GWh across more than 300,000 households. The ‘European market monitor’ likewise said that Germany is expected to continue holding a dominant share of the residential market and reported that around 616MWh of installs were made in that segment, but also points out remarkable growth patterns in the Iberian market.
With Spain lifting a controversial punitive tax on households that consume their own solar-generated electricity rather than feed it into the grid during 2020, the Spanish residential battery market leaped tenfold from about 4MWh in 2019 to 40MWh in 2020. There are also regional subsidy schemes for solar PV and storage that had an impact. By stark contrast, neighbouring France saw its residential market strongly contract about 75% from 2019 to 2020, largely due to COVID lockdowns, with only about six thousand systems installed last year.
Britain is likely to remain one of the biggest markets, building on about 941MW that was installed in the UK in 2020. A recent webinar hosted by our in-house expert team Solar Media Market Research described 2020 as the "Year of the battery" in the country and a large number of projects are likewise coming online this year.
“We are anticipating growth in the sector will accelerate as improved access to markets, particularly for behind-the-meter storage, and the increasing ability for batteries to stack value from multiple markets, add to government support from ‘green recovery’ packages,” Delta-EE’s head of energy storage and flexibility Jon Ferris said.