Korean battery maker Samsung SDI is upbeat on growing demand for energy storage, driven by an increasing number of countries pushing for energy self-sufficiency, along with a drop in battery prices making it economically feasible.
The global energy storage system, or the ESS market, is predicted to see the fast growth in the coming years. According to the US market research firm Navigant Research, it is forecast to grow to 4.3 gigawatt hours this year, around a 50 percent jump from the previous year, and grow around 60 percent on an annual average by 2020 to 14.8 GWh.
ESS captures energy produced for use at a later time, aiming to improve energy efficiency. It can effectively save renewable energy such as thermal power, solar energy, wind power and geothermal power, which otherwise are affected by bad weather or climatic conditions.
On growing demand for energy storage worldwide, Samsung SDI’s ESS business turned black for the first time in the fourth quarter of last year and has continued to see strong sales since.
“We expect to continue to see strong sales (this year) on growing energy storage demand as many nations have recently moved forward on climate change to reach Paris climate accord goals,” said Park Se-woong, vice president of Samsung SDI’s ESS team in an interview with The Korea Herald.
The Paris climate accord, which was agreed by 195 nations in late 2015, is designed to reduce carbon emissions in order to lower the earth’s temperature. This has led to many nations seeking energy self-sufficiency through renewable energy.
“Alongside the growing demand, the drop in battery prices is also making ESS have a better return on investment than power grid,” he added.
This year, Samsung plans to focus on the two largest ESS markets, the US and Europe.
“The energy storage markets in the US and Europe have been fast growing due to their ageing power grid and efforts to seek energy self-sufficiency,” he said.
Samsung SDI joined the largest battery-based energy storage project in the US in partnership with the US power giant AES Corp. and other companies from June to December of last year. It supplied 240 megawatt-hour ESS batteries, around 70 percent of total 350 MWh, the largest-ever supply for ESS projects.
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