Renewable Energy Storage Market

Renewable Energy Storage Market Size

The global Renewable Energy Storage Market size was valued at USD 77.75 billion in 2022 and is projected to reach USD 469.81 billion by 2030, growing at a CAGR of 22.12% from 2023 to 2030. The renewable energy storage market is growing rapidly owing to the increasing government support for long-term energy storage systems that could support power grids while significantly accelerating the development of wind, solar, and hydrogen energy. Supportive policies such as renewable energy targets, carbon reduction targets, and financial incentives can encourage investment in energy storage projects. Energy storage systems enable greater penetration of renewable energy into the grid, reducing dependence on fossil fuel-based power generation.

The increasing number of investments to develop renewable energy storage systems accelerates the market growth. For instance, in April 2023, the UK government subsidized USD 38.25 million for a range of innovative projects to develop new technologies for renewable energy storage and recovery. The combination of renewable energy generation and energy storage can provide reliable, clean, and sustainable solutions to meet energy needs while reducing carbon dioxide emissions. However, integrating energy storage systems into existing energy infrastructure can be difficult, as different systems can have different operational requirements and compatibility issues.

Analyst’s Review 

Continuous research and innovation are advancing energy storage solutions, and offer opportunities for a more reliable and efficient renewable energy system. As the cost of renewable energy production continues to decrease, combining it with energy storage is becoming an attractive option for the reliable and cost-effective supply of clean energy. These innovations, among others, demonstrate the ongoing efforts to enhance the efficiency, affordability, and accessibility of renewable energy sources. They play a crucial role in the transition to a more sustainable and low-carbon energy future. Energy storage systems can help address grid stability, increase reliability, and enable the integration of renewable energy sources into existing grid infrastructure. These market factors will shape the landscape of renewable energy storage and play a critical role in its adoption for a cleaner, more sustainable energy future.

Market Definition

Renewable energy storage refers to the ability to collect and store energy produced from renewable sources such as solar, wind, hydro, and geothermal. Renewable energy storage helps maintain grid stability by matching energy supply with demand. Storage of renewable energy is required across the modernized world, such as portable electronics, electric vehicles, and grid-scale energy storage. Renewable energy solutions have advanced significantly in recent years with the development of various technologies such as hydrogen, thermal storage, water pumps, batteries, and more. Material innovations and efficiency to reduce the cost of energy storage technologies and improve the integration of renewable energy sources are also important trends. In addition, distributed energy storage systems, electro-mobile energy storage, and integration with digital technologies are also emerging trends in the market.

Market Dynamics

The demand for renewable energy storage systems is expected to increase due to the rapid growth of solar energy systems. The renewable energy storage system used by domestic, commercial, or industrial consumers together with renewable energy provides an opportunity to improve the quality and reliability of electricity for such consumers. Consumers are increasingly adopting renewable energy storage systems as a cost-effective way to reduce environmental impact. Energy storage in residential construction reduces the electricity consumed in battery homes during peak times, which has led to an increase in usage. As a result, large companies invest and bring such innovative residential energy storage solutions based on renewable energy to the market, which is bolstering the industry growth.

Renewable energy storage costs play a critical role in determining the feasibility and adoption of energy storage technologies. The high installation and maintenance costs of residential energy storage systems restrain the market growth. A major obstacle to the adoption of energy storage systems among residential and commercial consumers is their high cost. The initial installation costs, which refer to the calculated price per unit of energy (or power) of the storage capacity of the system, are essential to quantify the initial investment. The costs of installation and maintenance of such home energy storage systems include the installation of a facility, which affects the total cost of the system.

Segmentation Analysis

The global renewable energy storage market is segmented based on type, end-user, and geography.

By Type

Based on type, the renewable energy storage market is segmented into wind power, hydroelectric power, solar power, bio energy, and others. The hydroelectric power is the leading segment owing to the increased investment in the generation of off-grid energy and electrification of rural areas in developing economies such as China, India, Brazil, Colombia, and Vietnam, which has resulted in the increased demand for the small-scale hydropower plants in the past few years. Furthermore, increasing government initiatives to promote the generation and adoption of hydropower are fuelling the growth of the hydroelectric power segment in the global renewable energy market.

By End-User

Based on the end-user segment, the renewable energy storage market is segmented into residential, industrial, and commercial. The residential segment is the dominating segment driven by the growing use of geothermal heat pumps in residential heating applications. The requirement of geothermal power is expected to increase significantly with the rise in demand for electricity due to the growing number of government initiatives to curb carbon emissions. The increased usage of rooftop solar energy systems to generate electricity for household purposes drives the segment growth.

Renewable Energy Storage Market Regional Analysis

Based on regional analysis, the global Renewable Energy Storage market is classified into North America, Europe, Asia Pacific, MEA, and Latin America.

Europe is dominating the global market owing to the increased resource availability and favorable government policies. The European countries have made investments in renewable energy storage owing to the environmental consciousness and increased political support. For instance, Germany pioneered battery storage technologies, while countries such as Norway and Denmark used pumped storage and interconnections to balance renewable energy.

Battery storage technologies, especially lithium-ion batteries, are gaining popularity in Europe. They offer flexibility and fast response times, so they are suitable for conserving renewable energy sources. The member states of the European Union (EU) have introduced support measures to accelerate the storage of renewable energy. According to the International Renewable Energy Agency (IRENA), the EU has set targets for achieving a 32% renewable energy share in energy consumption by 2030 where renewable energy storage technology plays a key role in achieving these goals. Financial incentives, subsidies, and regulatory frameworks have been created for the development of renewable energy storage projects. Renewable energy storage plays an increasingly prominent role in enabling a greater share of renewable energy and ensuring a reliable and sustainable energy source.

Competitive Landscape

The global renewable energy storage industry study will provide valuable insights with an emphasis on the fragmented nature of the global market. Prominent players are focusing on several key business strategies, such as partnerships, mergers & acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their respective market shares across different regions.

List of Key Companies in Renewable Energy Storage Market

• Delta Electronics, Inc.
• General Electric Company
• Hitachi, Ltd.
• Siemens Energy
• Tesla, Inc.
• Toshiba Corporation
• Trina Solar Co., Ltd.
• ABB Ltd.
• EVLO Energy Storage Inc.
• NEC Corporation
• PARKER HANNIFIN CORP

Key Industry Developments 

• February 2021 (Launch): Trina Solar Co., Ltd. launched its Trina Storage which is uniquely positioned to address the technical challenges of IPP (Independent Power Producers). It offers flexible storage solutions for various application scenarios such as solar energy storage, and standalone and large industrial and microgrids. This new business unit established a supply chain to deliver safe, sustainable, and cost-effective solutions.

The Global Renewable Energy Storage Market is Segmented as:

By Type

• Wind Power
• Hydroelectric Power
• Solar Power
• Bio Energy
• Others

By End-User

• Residential
• Industrial
• Commercial

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • UK
  • Spain
  • Germany
  • Italy
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia Pacific
• Middle East & Africa
  • GCC
  • North Africa
  • South Africa
  • Rest of Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America