In the new power system, energy storage has become a vital part, which is a necessary guarantee for new energy consumption and grid security, and will be widely used on the power generation side, the grid side, and the power consumption side, with a broad demand space. In the domestic market, the mandatory distribution and storage policy of wind and solar energy has promoted the exponential growth of energy storage demand. Driven by the outbreak of market demand and policy encouragement, mature pumped storage and lithium battery energy storage have shown explosive growth, and other new energy storage technologies have also entered the fast lane of development.
According to the different time requirements, the application scenarios of energy storage can be roughly divided into four categories: capacity type (4h), energy type (about 1 2h), power type (30min) and standby type (15min).
There are many types of long-term energy storage technologies, including pumped hydro storage, compressed air, heat and cold storage, hydrogen storage, and various types of capacity energy storage batteries (such as sodium-sulfur batteries, flow batteries, lead-carbon batteries, lithium slurry batteries, etc.).
Types of energy storage by application scenario.
In terms of technical principles, energy storage technology is mainly divided into physical energy storage, electrochemical energy storage and electrical energy storage, thermal energy storage and chemical energy storage.
Classification of energy storage technology paths.
Among the various energy storage technologies, pumped storage is the most mature application; Heat storage technology is also in the stage of large-scale application, and most of the flexible transformation of thermal power in China adopts heat storage technology; Lithium-ion battery energy storage has been rapidly applied in the past two years; Compressed air and flow batteries are also being commercialized.
Comparison of the advantages and disadvantages of various energy storage technologies
In the past two years, energy storage has become a hot spot in the capital market, and the market's investment in the energy storage industry has shown a blowout growth. The Energy Storage Application Branch of the China Physical and Chemical Power Industry Association predicts that by 2025, the scale of the new energy storage industry is expected to exceed one trillion yuan, and it is expected to be close to 3 trillion yuan by 2030.
The energy storage industry as a whole is improving, and there is different growth space for different energy storage technologies, and the whole industry is in a process of a hundred flowers blooming. However, despite the favorable policies and the continuous expansion of the demand side, the competition in the energy storage industry is very fierce.
According to the latest statistics released by Wood Mackenzie on the market share of global battery energy storage system (BESS) integrators in 2022, the world's top five system integrators account for 62% of the total shipments of battery energy storage systems (MWH), and Sungrow ranks first in the world with 16% of the global battery energy storage system (BESS) market share, which is the first time that a Chinese company has won this result, followed by Fluence with 14%, Tesla with 14%, and Huawei with 9%. BYD accounted for 9%.
Kevin Shang, Senior Research Analyst at Wood MacKenzie, said: "The battery energy storage system integrator industry is becoming increasingly competitive as major policy developments drive the battery energy storage system market. While incumbent system integrators are struggling to increase market share, the fast-growing energy storage market is also attracting many new entrants into the space.
A common feature of leading energy storage system integrators is that their globally distributed operations allow them to gain access to a larger customer base. In addition, many energy storage system integrators have been looking to strengthen the vertical integration of their ** chain. Kevin Shang said.
In terms of regions, in North America, Tesla ranks first and Sungrow ranks third. The North American energy storage system integrator market is concentrated, with the top five players accounting for 81% of the market share in the region in 2022. Tesla leads the region by shipment volume with a 25% market share.
In the European region, Fluence is the first, and BYD is the third. Household savings in the European market achieved rapid growth in 2022. Grid-side energy storage has also made great progress. BYD ranks third in the European energy storage market, accounting for 17%. In second place is the Japanese company Nidec with 18%.
In the Asia-Pacific region such as China, India, Southeast Asia, and Australia, the market competition is more intense. In 2022, China led the Asia-Pacific battery energy storage integrator market with a market share of 86%, of which Sungrow ranked first, CRRC ranked second, and Hyperstron ranked third.
Kevin Shang said that China's integrator market is becoming increasingly competitive and is being severely squeezed by upstream and downstream chain players. As bidding requirements for energy storage projects become more detailed and stringent, having manufacturing capabilities for key components such as batteries, PCS, BMS, and EMS is often a necessity rather than a plus.
In the face of the trend of homogenization of energy storage products, ** has become the most significant differentiator and key winning factor in the region. Kevin Shang added that the battle between energy storage system integrators has begun in China, with more and more players willing to sacrifice profits for market share, dragging down the profitability of the entire industry. But at the same time, their aggressive bidding strategy with low margins will not continue. The intensification of market competition will make it difficult for enterprises with low profitability and low competitiveness to survive in the next few years.
The potential market development space of energy storage.
Increasing demand and transformation of the power mix are the main drivers of development.
China's power market demand has further increased, and the capacity and proportion of installed power generation capacity and non-fossil energy power generation are increasing, bringing more room for development to the energy storage market expansion.
By the end of 2022, the installed capacity of new energy storage projects in operation across the country has reached 8.7 million kilowatts, with an average energy storage duration of about 21 hour, an increase of more than 110% from the end of 2021. Among them, from the perspective of the proportion of newly installed technology in 2022, lithium-ion battery energy storage technology accounts for 942%, which is still in an absolute dominant position, and the proportion of new compressed air energy storage and flow battery energy storage technology is up to respectively. 3%, accounting for a significant increase in growth. In addition, a variety of energy storage technologies such as flywheel, gravity, and sodium ion have also entered the engineering demonstration stage.
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