Europe's Energy Storage Market Expected to Double in 2021: EMMES 5.0

According to a report released by the European Association for Storage of Energy (EASE) and Delta-EE today, Europe's annual energy storage market is expected to reach 3 GWh in 2021 from 1.7 GWh in 2020, almost double the growth rate. 

The fifth edition of the European Market Monitor on Energy Storage EMMES 5.0, which report updates and extends the previous report (EMMES 4.0). The report reveals that the 2020 deployments brought Europe's cumulative installed base across all segments to 5.4 GWh. 

The report reveals the effects of the pandemic on the energy storage market, with lockdown affecting commercial and industrial, and behind-the-meter segments, while front-of-meter projects proved more resilient. Looking ahead, 2021 looks particularly strong for the sector with new ancillary services opening across Europe and national targets further supporting regional projects.

"The total annual energy storage market in Europe is expected to reach 3,000 MWh in 2021, almost double the annual storage deployments seen in 2020," the report noted. 

It highlights the strong performance of the front-of-meter market across Europe in 2020, with new balancing and ancillary services in countries such as Italy, the UK, and the Nordic region supporting demand for grid-level storage projects of increasing duration.

EMMES 5.0 shares that the behind-the-meter segments, residential and C&I, however, were more affected by the pandemic, which limited the onsite installations. However, these sectors are expected to recover as the pandemic recedes. Also, these sectors will be supported by the EU COVID-19 Recovery Plan of Euro 1.8 trillion that is expected to channel significant funds to green energy technologies. The European Parliament has announced that the Commission is to develop a new comprehensive EU energy storage strategy that could create new market incentives and help accelerate recovery. 

Speaking of the expected developments, the Secretary General of EASE, Patrick Clerens stated, “The excellent 2021 storage outlook is a testament to the importance of a supportive policy and market framework for storage: the implementation of the Clean Energy Package is opening up new markets around Europe and improving the business case for storage. Policymakers’ strong commitment to the EU Green Deal and a ‘green’ COVID-19 recovery is hugely promising for the storage sector.”

Consequently, this month a European Commission (EC) vice-president had said that Europe is all set to become the world’s second-largest manufacturer of lithium-ion battery cell by 2025, although some key challenges need to be addressed.

Also, recently the Northvolt announced investing USD 200 million to build Europe's largest energy storage factory.