Particularly focusing on battery storage, which is presently the leading technology, our topic is  to uncover what has been driving the push for energy storage in current world and what utilities and policymakers have been doing to define battery storage, develop storage markets, and to support ongoing deployment.

What is driving the push for energy storage?

1.       Cost and performance improvements: Particularly relating to lithium-ion batteries, driven by expanding electric vehicle markets and related manufacturing economies of scale, costs are dropping while performance is improving.

2.       Grid modernization: The growth of battery storage goes hand-in-hand with grid modernization efforts, including the transition to smart grids. Batteries help to unlock the full potential of smart technologies and vice versa.

3.       Global movement toward renewables: Broad support for renewable energy and emissions reduction is also driving adoption of battery storage solutions. This is especially apparent within the corporate and public sectors.

4.       Participation in wholesale electricity markets: Battery storage can help balance the grid and improve power quality regardless of the generation source. Nearly every nation we examined is revamping its wholesale market structure to allow batteries to provide capacity and ancillary services.

5.       Financial incentives: Multiple nations are increasing the availability of financial incentives for storage investment. This reflects the growing awareness of policymakers of the range of benefits battery storage can deliver throughout the electricity value chain.

6.       Phase-outs of FITs or net metering: Reduction of feed-in-tariffs (FITs) or net metering payments is emerging as a driver of behind-the-meter battery deployments in some countries, as customers strive to derive maximum value from their rooftop solar installations in the absence of these incentives.

7.       Desire for self-sufficiency: Motivations for purchasing storage systems are not purely financial. In Germany, for example, ecological motives, independence from utilities, resiliency, and technical curiosity are all thought to be motivations.1 Similarly, self-sufficiency is a strong driver in Italy, the United Kingdom, and Australia.2, 3

8.       National policy: Many countries are turning to renewable energy storage to reduce dependence on energy imports, enhance the reliability and resiliency of their systems, and move toward environmental and de-carbonization targets.

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