Recently, the German Energy Storage Association, in conjunction with Energie Consulting, a market consultancy, released a report saying that, unlike other energy sectors, the German energy storage market demand does not seem to have been strongly impacted by the new crown pneumonia epidemic recently, although the development progress of each market segment varies, but the overall upward trend. Data show that the overall revenue of the German energy storage market rose from about 6.3 billion euros in 2019 to 7.1 billion euros in 2020, and is expected to further increase to 7.6 billion euros in 2021.
Significant growth in the size of household energy storage
According to a survey by Energie Consulting, by the end of 2020, nearly 70% of Germany's home solar power installations have been accompanied by battery storage facilities, and the installed capacity of Germany's household energy storage systems is about 2.3 GWh. Up to now, more than 300,000 households in Germany have installed battery storage systems, with an average installed capacity of about 8.5 kWh.
The survey shows that the German market for household energy storage systems will generate revenues of approximately €1.1 billion in 2020, an increase of nearly 60% from 2019.Energie Consulting analyzes that this is mainly due to the growing importance of energy self-sufficiency and security of supply for individual households in Germany under the impact of the new crown pneumonia epidemic.
Energie Consulting partner Jorg Blaurock said that in May last year, the German government removed the 52 GW subsidy cap on installed photovoltaic power generation, which brought additional momentum to the German PV storage market.
The report also predicts that in 2021, the continued expansion of the German photovoltaic market and the growth in demand for electric vehicles will provide a new "strong growth route" for the household battery storage sector. It is expected that by the end of this year, the cumulative installation of household energy storage devices in Germany will reach 385,000-445,000, with revenues estimated to reach 1.3 billion euros.
In addition, household thermal energy storage in Germany's overall energy storage market share is also very significant. 2020, Germany installed about 120,000 heat pumps, is expected in 2021, the new installation will be up to 168,000 units, this year's revenue is expected to reach 2.6 billion euros, is twice the electrochemical energy storage field.
Commercial and industrial sector market "warming up"
According to Energie Consulting, the value of the energy storage market in Germany, including thermal energy storage and battery storage, including household energy storage accounted for about half of the revenue of the entire German energy storage industry. In contrast, the commercial and industrial and utility sector energy storage market revenue accounted for a relatively small percentage, with the commercial and industrial sector energy storage market revenue accounting for only 18%.
Energie Consulting expects that in 2021, although German commercial and industrial energy storage revenues will not immediately return to pre-epidemic levels, due to the demand for decarbonization in the industrial sector and the development of the electric vehicle industry, Germany's commercial and industrial energy storage revenues will be reduced by about 20%. The size of the German energy storage market in the commercial and industrial sectors will show an increasing trend due to the development of the industry and the electric vehicle industry.
Energie Consulting said that German commercial and industrial energy storage system revenues, including car charging, fell from €1.5 billion to €1.2 billion during 2019-2020, but this year, it is expected that this figure could rebound to about €1.35 billion.
It is worth noting that the report reminds, although last year, Germany for the first time for renewable energy equipped with energy storage system "innovative tender", and bring some impetus to the market, but these systems only began to build this year. In addition, the "grid booster" and other large projects are expected to significantly increase the installed capacity, but the implementation of the project on the energy storage market revenue impact until 2022 to show.
Energie Consulting expects that all energy storage market segments in Germany will see revenue growth in 2021, driven by economic demand, although trends vary by market segment.
Regulatory areas remain problematic
However, the report points out that it is worth noting that regulatory issues are still the biggest obstacle facing the German energy storage industry. Energie Consulting points out that although the market demand is growing, the future development of the German energy storage industry still faces challenges due to the lack of clear regulatory regulations for energy storage, the lengthy approval process for energy storage projects, and the lack of adequate grid metering and billing concepts.
Valeska Gottke, senior market expert at the German Energy Storage Association, said, "Currently in Germany, energy storage systems are not clearly positioned and they pay twice for the electricity they take from and transmit to the grid, which seriously affects the economics of energy storage systems."
At the same time, Energie Consulting points out that currently, energy storage systems are allowed to be used for multiple applications at the same time to provide multiple benefits, but this also restricts the development of energy storage to a certain extent, and the regulator's knowledge of the application of energy storage technology needs to be further deepened.
In fact, regulatory issues are not only present in the German energy storage market. Last year, energy consulting firm Wood Mackenzie Power & Renewables pointed out in a report that while Europe is very active in deploying renewable energy, the role of energy storage systems as a supporting facility has not been fully recognized, and the market position is ambiguous. Rory McCarthy, principal analyst at Wood Mackenzie, said that despite the growing share of renewable energy generation in Europe, the share of European energy storage installations in the global energy storage market has declined in recent years, and the trend is expected to continue.
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