Global battery energy storage pipeline reaches 3.4 GW

The global pipeline for utility energy storage projects has doubled over the past year to reach 3.4 GW, according to analysis from market information provider IHS Markit.

The growth seen over the last year is set to continue and the data from the first quarter of 2017 indicate that, for the first time, Asia accounts for more than one third of planned battery projects. New project announcements in Australia also contributed significantly to the 390 MW growth seen in Q1 2017.

From a regional perspective, the pipeline for ‘utility side of meter’ storage in Europe, the Middle East and Africa grew by a relatively small 30 MW during Q1 2017. This is significantly less than the
400 MW of projects announced in the region in the last quarter of 2016, which saw a spike due to projects announced as part of the UK capacity auction.

The US saw more project completions than new project announcements in Q1 2017, as around 100 MW of projects were completed in California. IHS Markit put this down to the Californian utilities Southern California Edison and San Diego Gas and Electric’s response to the Aliso Canyon gas leak – which has restricted the availability of gas peaking plants to provide peak power in the state.

IHS Markit says that market trends signal a divergence in grid-scale battery applications, and that batteries are increasingly being used for longer duration applications including providing peaking capacity – rather than simply providing short-term frequency regulation.