Jul 27, 2023   SOURCE: BusinessWire

Pumped-Storage Hydroelectricity Dominates: Trends Shaping the APAC Energy Storage Market 2023-2028 - ResearchAndMarkets.com

The "Asia-Pacific Energy Storage Systems Market - Growth, Trends and Forecasts (2023-2028)" report has been added to ResearchAndMarkets.com's offering.

The Asia-Pacific energy storage systems market is anticipated to showcase robust growth, registering a Compound Annual Growth Rate (CAGR) of over 20% during the forecast period. Despite facing setbacks from the COVID-19 pandemic in 2020, the market has successfully bounced back and is now operating at pre-pandemic levels.

Key Highlights

The growth of the energy storage systems market in the Asia-Pacific region is primarily driven by the increasing adoption of renewable energy sources and the implementation of policies supporting the development and use of energy storage technologies. Over the medium term, these factors are expected to fuel market expansion and bring about positive changes in the energy landscape.

On the flip side, the high capital investments required for setting up energy storage systems, along with complexities and additional space requirements, are expected to act as hindrances to the market's growth during the forecast period. However, product innovation and the integration of cutting-edge technologies in solar PV inverters are projected to open up new and lucrative growth opportunities for the Asia-Pacific energy storage systems market.

India is poised to witness significant growth and is expected to experience a remarkable CAGR during the forecast period. This impressive expansion is attributed to the nation's increasing investments in renewable energy projects and supportive government policies aimed at promoting sustainable energy solutions.

APAC Energy Storage Systems Market Trends

Pumped-Storage Hydroelectricity (PSH) Takes Center Stage

Pumped-storage hydroelectricity (PSH) emerges as the dominant method of energy storage in the Asia-Pacific region. PSH is a modern application of energy storage, where excess energy available during off-peak hours is used to pump water to an upper reservoir, which is then released during peak demand periods to generate electricity.

Pumped-storage hydroelectricity is known for its efficiency, with round-trip efficiencies ranging from 70% to 84%. China leads the world in pumped-storage hydropower capacity, boasting over 36.3 gigawatts in 2021. Japan ranks second with approximately 21.9 gigawatts of capacity.

Noteworthy developments in PSH include China's ambitious plans to commence work on more than 200 pumped hydro plants, providing a combined generating capacity of 270GW by 2025. Additionally, India aims to add 79 hydropower projects, including 11 pumped-storage projects with a total capacity of 8.7 GW, by 2030.

Based on these factors, pumped-storage hydroelectricity is set to maintain its dominance in the Asia-Pacific energy storage systems market over the forecast period.

India Emerges as a Key Player

India is emerging as a major player in the energy storage systems market, driven by the growing renewable sector and the need to address challenges related to renewable power generation intermittency. India is expected to become the third-largest country in terms of energy storage installations by 2040, with an exponential increase in installations projected from 9GW/17GWh deployed in 2018 to 1,095GW/2,850GWh by 2040 worldwide.

The country's solar photovoltaic energy capacity reached over 49.3 gigawatts in 2021, experiencing continuous growth. The Indian government has introduced the USD 2.48 billion Production Linked Incentive (PLI) scheme for battery storage to strengthen the manufacturing capacity of advanced chemistry cell (ACC) and niche ACC in India.

Numerous initiatives and projects are underway in India, including the construction of a 30MWh pumped hydro storage project in Western Australia and the implementation of utility-scale battery energy storage systems.

As India continues to prioritize renewable energy and invest in energy storage, it is set to witness significant growth in the Asia-Pacific energy storage systems market.

APAC Energy Storage Systems Market Competitor Analysis

The Asia-Pacific energy storage systems market is characterized by fragmentation, with several major players driving the industry's growth. Some of the key competitors in the market include Tesla Inc., Contemporary Amperex Technology Co. Ltd, General Electric Company, Siemens Gamesa Renewable Energy SA, and Voith GmbH & Co. KGaA.

Conclusion

The Asia-Pacific energy storage systems market is projected to grow at an impressive CAGR of over 20% during the forecast period, showcasing remarkable resilience after facing challenges posed by the COVID-19 pandemic. With increasing support for renewable energy and ongoing product innovation, the region is set to witness significant growth in the energy storage systems sector. India, in particular, stands out as a key player in this rapidly evolving market, propelled by ambitious renewable energy goals and government-backed initiatives.

A selection of companies mentioned in this report includes

  • Tesla Inc
  • Contemporary Amperex Technology Co. Ltd
  • Voith GmbH & Co. KGaA
  • General Electric Company
  • Hydrostor Inc.?
  • Siemens Gamesa Renewable Energy SA
  • Fitzer Incorporation
  • BYD Co. Ltd
  • Bharat Heavy Electricals Limited
  • NGK Insulators Ltd

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