Lithium-ion is set to account for 85% of future energy storage system projects as developers take advantage of regulatory policy, deployment mandates and falling technology costs.
The findings were reported by industry analysts Navigant Research based on its database of global energy storage projects that incorporated regional analysis of technology choice, capacity, and market share for deployed projects and projects in the pipeline.
The report, Energy Storage Tracker 4Q19, stated a number of factors including grid modernisation programs had created market conditions in which hundreds of energy storage projects were deployed globally during 2018 and 2019.
The report noted that lithium-ion was the fastest growing energy storage market and was estimated to reach more than 28GW of capacity by 2028.
Ricardo F. Rodriguez, research analyst with Navigant Research, said: “Although pumped hydro storage still accounts for 96% of installed energy storage capacity worldwide, lithium-ion is the choice technology among project developers and system integrators.
“The technology is expected to account for 85% of newly installed energy capacity.”
In addition to the growth of lithium-ion, three types of storage projects typified deployments across the globe in 4Q 2019: commercial and industrial applications located behind-the-meter (BTM); utility-scale projects replacing gas peaker plants; and utility-scale storage projects co-located at large solar PV or wind generation facilities.