Lithium-ion batteries are leading the global charge in advanced batteries for utility-scale storage, which is expected to see a 15-fold increase on 2016 in global revenue.
The $231 million revenue in 2016 is set to rise to $3.6 billion by 2025, according to a report by Navigant Research.
The report predicts the largest growth to be in Asia-Pacific, North America and Western Europe where large-scale ESSs are already used to control renewable energy entering the grid.
The report goes on to claim flow batteries could eventually take over where longer-duration services are required because they can scale up at a lower cost than other forms of battery energy storage.
Improvements in advanced battery energy storage technologies, new regulatory and market drivers and emerging business models are adding to the growth of utility-scale energy storage on grids worldwide.
“Today, several factors are converging to enable the growth of grid-connected utility-scale energy storage markets,” said William Tokash, senior research analyst with Navigant Research.
“Battery energy storage systems (BESSs) have demonstrated that value can be delivered by energy storage technology on the grid, and regional transmission and distribution (T&D) system operators have recognised these advances and are enacting new rules to allow BESSs to participate in power markets.