Energy storage market is growing explosively!
Energy Storage NL today published its Sector Analysis 2022-2023. This study took a look at the current and future market for energy storage in the Netherlands[1]. The conclusion of the analysis is that the potential for energy storage in the Netherlands is enormous, but can only be realized if existing laws and regulations are amended so that the rollout of energy storage is no longer hindered but rather encouraged.
Need for energy storage
Energy storage is indispensable for a sustainable, reliable and affordable energy system. The need to achieve more flexibility in the electricity grid through storage is therefore increasing rapidly. The government endorses this in the recently published Energy Storage Roadmap, which lists various opportunities to grow the deployment of electricity, heat and molecule storage. The cabinet has therefore listed seventy actions in the Roadmap to accelerate energy storage in the Netherlands.
Energy storage industry expects explosive growth
Industry analysis shows that the energy storage industry expects strong revenue growth, by as much as 1230% through 2026. However, achieving this explosive growth hinges on putting the right policies in place. ESNL's research shows that regulations, subsidies and financing are the main obstacles to the industry's growth expectations. In addition, the availability of materials and labor are also important factors.
Realized storage capacity falls short of targets
Grid operator TenneT recently indicated that 9 gigawatts of battery power for the main voltage grid will be needed by 2030 to keep the power grid stable and affordable. Anno 2023, completed storage projects are estimated to be around 180 megawatts. This means that only 2% of the total storage capacity needs for the main voltage grid have now been realized. A huge acceleration of energy storage in the Netherlands is therefore socially necessary.
In other European countries, the market is developing faster, mainly due to the lack of high transportation costs for energy storage. According to Energy Storage NL, there is an uneven playing field with other countries. The danger of this is that economic activities around energy storage will be shifted towards Belgium and Germany.
Technological development is accelerating
The industry analysis further shows that technological development of innovative storage systems will accelerate in 2023. In this regard, thermal storage systems are undergoing remarkable development. Whereas current products are often still being tested in a pilot environment, this year companies will take the step towards a market-ready product. Energy Storage NL emphasizes the importance of stimulating the thermal storage market so that actual projects can be realized. One way of doing this is to speed up permit procedures and provide guarantees for financing.
The file can be downloaded by members in My ESNL: https://www.energystoragenl.nl/werkgroepen/marktonderzoek/
[1] The results from the study came from a member survey, in which more than 80 companies from ESNL constituencies responded, supplemented by conclusions from international comparative (market) studies.
