The global industrial and commercial energy storage market is expected to reach 24 billion yuan in 2025

"In the next three to five years, industrial and commercial energy storage will continue to become the mainstream." Liu Yong, secretary-general of the Energy Storage Application Branch of the China Chemical and Physical Power Supply Industry Association, pointed out. This is due to policy orientation, the self-regulation ability of electricity consumers, the introduction of electricity price subsidy policies, and the continued advancement of China's electricity market reform.

Recently, the "2023 China Industrial and Commercial Energy Storage Development White Paper" (hereinafter referred to as the "White Paper") was written by the editor-in-chief of the China Chemical and Physical Power Source Industry Association and the research team of the Energy Storage Application Branch of the China Chemical and Physical Power Source Industry Association. Released at the "Carbon Neutral Energy Summit Forum and the 3rd China International New Energy Storage Technology and Engineering Application Conference".

The "White Paper" shows that global industrial and commercial energy storage is mainly concentrated in the United States, Germany, Japan and China. The installed capacity of industrial and commercial energy storage in the above four countries accounts for approximately 79% of the total global installed capacity. The main reason is that the industry and commerce (mainly industry) in the above-mentioned countries are relatively developed, and at the same time, policy support for industrial and commercial energy storage is relatively high. The "White Paper" predicts that the newly installed capacity of global industrial and commercial energy storage will reach 1.5GW in 2023. By 2025, the cumulative installed capacity of global industrial and commercial energy storage will reach 11.5GW. According to this estimate, by 2025, the cumulative global industrial and commercial energy storage market size will be approximately 19 to 24 billion yuan. Among them, the United States and China will become the two major markets, and their combined installed capacity is expected to account for more than 50% of the world's total.

From the perspective of China, the "White Paper" shows that based on the distribution of cumulative installed power of industrial and commercial energy storage in 2022, East China, South China and Northwest China rank at the top in terms of installed capacity. East China has the largest scale of industrial and commercial energy storage in operation, with a cumulative total of 373MW, accounting for 37.8% of the country’s total installed industrial and commercial energy storage power. Industrial and commercial energy storage installations in East China are mainly distributed in Zhejiang and Jiangsu, two major power-consuming provinces. This is due to its high peak-to-trough price difference, numerous subsidy policies, and high enthusiasm among industrial and commercial enterprises for deploying energy storage.

In the first half of this year, China's user-side energy storage projects have newly installed capacity of approximately 138MW, which is mainly industrial and commercial energy storage. It is expected that in 2023, China's newly installed industrial and commercial energy storage capacity is expected to reach 300 to 400MW.

The "White Paper" predicts that by 2025, China's total industrial and commercial energy storage installed capacity will account for approximately 4.5% of the total new energy storage installed capacity. It is estimated that the total installed capacity of new energy storage is about 70GW. By the end of 2025, the total installed capacity of industrial and commercial energy storage in China will be about 3.2GW.

The "White Paper" also points out several challenges currently encountered by industrial and commercial energy storage. The access of large-scale industrial and commercial energy storage projects is restricted by their location and surrounding grid conditions, making their grid connection difficult. The dispatch frequency of most energy storage power stations is less than twice a day, which affects their economic benefits. In addition, although contract energy management dominates the business model, the owner's income distribution is low, resulting in insufficient enthusiasm for participation. At the same time, compared with European and American countries, China's industrial and commercial energy storage has not yet achieved large-scale promotion due to factors such as the smaller peak-to-valley price difference in the power grid.

The "White Paper" points out that looking into the future, the rapid development of China's industrial and commercial energy storage industry still urgently requires the joint support of national policies, power grid mechanisms, business models, enterprise units and other parties. The first is to continuously improve the top-level design for the development of industrial and commercial energy storage technology industries and lay a policy foundation for the rapid development of the industry. Second, China’s industrial and commercial energy storage industry standards still need to be further refined and improved. It is recommended to establish a standard system that ensures the high safety and high quality of energy storage products in various subdivisions by improving the construction of various standard systems for industrial and commercial energy storage. Promote relevant Chinese companies to improve product compatibility, achieve standardization, modularization and serialization of industrial and commercial energy storage products, and help Chinese companies enter and occupy the international market. The third is to take multiple measures to promote technological breakthroughs and economic improvements in the industrial and commercial energy storage industry, and further create favorable conditions for the rapid development of the industry. Various industrial and commercial energy storage technologies still face problems such as low life-cycle economics, and there is still considerable room for overall cost reduction and efficiency improvement of industrial and commercial energy storage systems. The fourth is to guide and encourage the industrial and commercial energy storage industry to continuously improve product performance and quality, providing a solid foundation for the large-scale promotion of industrial and commercial energy storage. It is recommended to actively guide and encourage the industrial and commercial energy storage industry to attach importance to product research and development and actively create high-quality, high-performance high-end products. Fifth, actively encourage corporate users, social capital, etc. to explore business models and profit methods, and continuously improve the efficiency and benefits of industrial and commercial energy storage.

Further reading

The latest developments and trends of the global industrial and commercial energy storage