The global battery energy storage pipeline project has accumulated 15GW
International market research institute IHS Markit recently released a report saying that the global fixed battery energy storage market is developing strongly and the completion of projects is 83% higher than 2017. Project delays in 2017 meant more than 850 MW in the first quarter of 2018, a strong start in 2018. Project activity slowed in the second quarter, entrusting nearly 800 megawatts before the third quarter rebound. Due to the traditional slowness during winter and Christmas, the number of projects completed in the fourth quarter was the least.
As the project pipeline continues to grow, battery storage has a positive future, reaching 15.2 GW at the beginning of 2019, which is half the size of the new Pumped Storage (PHES) pipeline. The Asia Pacific region has the most powerful pipeline, but it includes some speculative projects that, if completed, will dwarf the world's largest single-site energy storage project.
The US market grew exponentially in 2019, and the Americas already had a project pipeline of 4.3 GW. With the advancement of the policy framework in the United States, IHS Markit has tracked project activities in 39 states that have operational energy storage systems and five other states that are planning or building projects.
Based on more than 1 megawatt of project statistics, NEC Energy Solutions, Nidec and Tesla Energy are the major energy storage system integrators in 2018. Narada and Tesla Energy joined the first-line camps such as LG Chem and Samsung SDI, becoming the most important battery suppliers for the commissioned projects, which together accounted for 67% of the battery storage pipelines of the confirmed supplier plans. .
A clear trend in 2018 is the growing size of large front-end systems, further evidence that the industry is maturing. Announcements for systems over 100 megawatts are occurring more frequently, although they currently account for only about one-third of the total installed capacity, but late activity is increasing, highlighting the future importance of residential and commercial applications.
Korean battery fire
During 2018, South Korea reported more than 15 battery fires, which led the Ministry of Commerce, Industry and Energy (MOCIE) to take action. Currently, more than 1,250 battery energy storage systems are installed in the country. With frequent fires in the country, the authorities prioritized safety checks on all installed battery systems, and the professional working group worked with major battery manufacturers and utilities to conduct inspections.
Since such accidents will continue to occur in 2019, MOCIE announced the mandatory closure of 342 public energy storage systems and recommended that private owners of energy storage systems take them offline until the ongoing investigation is over. This action is expected to reverberate throughout Korea and around the world, but it will encourage more stringent installation and safety regulations.
Ireland is expected to launch the first phase of the new ancillary services market later this quarter. It is expected to purchase 91 to 140 MW in September 2019, and all systems are scheduled to be installed in September 2021.
Prior to the May federal elections, Australian states and territories continued to support renewable energy generation and energy storage battery systems. South Australia has set a precedent for other states and has provided substantial energy storage subsidies. Due to the high residential electricity prices in some Australian regions, IHS Markit expects PV system owners to explore storage opportunities as regional governments encourage the use of residential solar and storage and advance the integrated system to virtual power plants (VPPs).
The US Federal Energy Regulatory Commission (FERC) issued Order No. 841 in February 2018, which aims to eliminate major regulatory barriers to energy storage and aims to create a level playing field for storage to capture new sources of revenue. As of December 2018, both independent system operators and regional transmission system service providers have submitted plans to reflect energy storage resources, which will be implemented in 2019.
This policy and regulatory development means that 2019 should be another positive year for energy storage. After the strong completion in 2018, the greater geographical diversity, more global suppliers will promote the development of the industry.