Domestic energy storage: bidding market is booming, and industrial and commercial storage benefits from the larger price gap of peak and valley hours
Large-Scale Energy Storage: In Q2 2023, domestic energy storage achieved a significant milestone in bidding capacity, reaching an impressive 6.5GW/14.2GWh. This marks a remarkable year-on-year increase of 165% and 191% respectively. Notably, the average bidding price for energy storage systems witnessed a substantial decline, with June registering a notable drop to 1.16 yuan/Wh, representing an 8.40% reduction compared to the average price observed in March 2023. In terms of operational performance, the aggregate volume of domestic grid-connected energy storage projects in the first half of 2023 surged to 7.59GW/15.59GWh, closely mirroring the total scale recorded last year. Furthermore, within the realm of project applications, independent grid-connected energy storage projects carved out a significant portion, constituting 64% of the overall volume.
Commercial and Industrial Energy Storage: As of August 2023, it is the peak of the summer season. Numerous regions have embraced peak tariffs, resulting in a notably widened peak-valley price differential compared to other seasons. This trend is evidenced by 24 regions where the peak-valley price gap exceeds 0.7 yuan/kWh, remaining consistent with figures from July. Among these, a noteworthy eight regions have experienced a peak-valley price differential surpassing 1 yuan/kWh.
U.S. Energy Storage: The deferral situation for installing large-scale energy storage has witnessed substantial improvement since June, setting the stage for an anticipated peak in the latter half of the year.
Large-Scale Energy Storage: Turning our attention to operations, the United States saw a notable uptick in the deployment of capacities exceeding 1MW during the first half of 2023, registering an impressive 1.8GW. This represents a year-on-year increase of 6.0%. Remarkably, a substantial portion of this capacity, amounting to 1.0GW, was added in June alone, marking a staggering month-on-month growth of 621.4%. The trajectory for the latter half of 2023 is equally ambitious, with a projected planned operational capacity of 7.9GW. The initial half of the year witnessed certain energy storage projects facing operational delays, primarily attributed to supply chain intricacies and grid connection queueing. However, starting from June, there has been a noteworthy surge in the operational capacity of large-scale energy storage, and this trend is expected to further be obvious in the latter half of the year.
Household and Industrial-Commercial Storage: Within the realm of household storage, the first quarter of 2023 saw the installation of U.S. household storage capacities reaching a substantial 388.2MWh. This signifies a commendable year-on-year increase of 16%, fueled by the mounting demand for distribution storage. It is anticipated that the pace of installations will gain further momentum throughout the current year. In the context of industrial and commercial storage, the first quarter of 2023 observed the installation of 203.3MWh, marking a year-on-year growth of 10%. Forecasts for the entire year indicate a remarkable surge, with the installed capacity of industrial and commercial storage in the U.S. projected to be three and a half times that of 2022.
European Energy Storage: The household storage market continues to flourish, prominently characterized by an upsurge in large-scale storage initiatives.
Household Energy Storage: Throughout Q2 2023, Germany marked a significant milestone with household storage installations totaling an impressive 1.12GWh. This translates to a remarkable year-on-year growth of 153.51%. The prevailing high tariffs and incentivizing policies in Germany have contributed to the favorable economics of household PV storage, maintaining its robust stance. Driven by advantageous policies in Q1 2023, Italy also experienced a surge in household storage installations, amounting to 1.1GWh. However, a subsequent policy decline in 2023 has led to a deceleration in the development of household energy storage.
Large-Scale Energy Storage: Shifting focus to the United Kingdom, Q2 of 2023 witnessed the successful commissioning of a substantial 413MW of large-scale energy storage capacity, and the cumulative battery energy storage scale reaches an impressive 2.9GW. Meanwhile, Germany added 63.2MWh of sizeable energy storage during the same period, complemented by an additional 32.0MWh dedicated to industrial and commercial storage. Furthermore, Germany’s ongoing plans entail the deployment of a substantial 176.9MWh of large-scale storage in the near future.
