Grid Scale Battery Market Analysis

Global Grid Scale Battery Market Overview:

The Grid scale battery market size was valued at USD 1.05 Billion in 2023. The grid scale battery industry is projected to grow from USD 1.39 Billion in 2024 to USD 9.73 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 27.58% during the forecast period (2024 - 2032). Growing integration of renewable energy with battery storage, rising demand to save extra energy produced at the grid location with effective load supervision and rising adoption of molten salt batteries are the key market drivers enhancing the market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

24M Technologies, Inc. (U.S.): 24M has been scaling up its semi-solid lithium-ion battery technology, which promises lower costs and higher safety than conventional lithium-ion. The company has entered strategic partnerships to deploy this technology in large-scale storage applications, particularly in the U.S. and Europe.

Grid Scale Battery Market Trends

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  Increased integration of renewable energy with battery storage is driving market growth.

  
  

Market CAGR for grid scale batteries is driven by the increased integration of renewable energy with battery storage. Grid scale battery storage can also contribute to clean energy. Battery storage is one of various technology options that can improve power system flexibility and enable high renewable energy integration. Studies and real-world experience have shown that interconnected energy systems can safely and reliably integrate large amounts of renewable energy from Variable Renewable Energy (VRE) sources without new energy storage resources.

Additionally, the need to incorporate energy produced from renewable sources such as solar photovoltaic and wind power and improve grid stability, reliability, and resiliency are driving product demand. Because of its extraordinary ability to hold, absorb, and re-inject electricity, the market is evolving as one of the viable options to increase system flexibility. Furthermore, increased consumer knowledge of efficient energy usage and a rising desire to save additional energy generated at the grid location with effective load control likely drive grid scale battery revenue.

Energy storage offers numerous advantages, such as integrating diverse resources and improving reliability and resilience. In addition, grid scale batteries provide the advantage of arbitrage. Arbitrage comprises charging the battery when energy prices are low and discharging it during the more expensive peak times. This practice can provide a revenue stream for the Battery Energy Storage Systems (BESS) operator by taking advantage of electricity prices that vary throughout the day. An extension of the energy arbitrage service is the reduction of renewable energy curtailment.

Moreover, plant operators and project developers are interested in using as much cost-effective and emission-free renewable energy generation as possible. However, in systems with an increasing share of Variable Renewable Energy (VRE), the limited flexibility of conventional generators and timing discrepancies between renewable energy supply and electricity demand can cause renewable generators to throttle their output. Charging the battery with low-cost energy during excess renewable generation and discharging it during high demand is profitable for plant operators. 

Grid Scale Battery Market Segment Insights:

Grid Scale Battery Type Insights

The grid scale battery market segmentation, based on battery type, includes lithium-ion batteries, flow batteries, zinc-hybrid batteries, and sodium-based batteries. Lithium-ion batteries segment dominated the market, accounting for 35% of market revenue (0.37 Billion). In developing economies, category growth is driven as these batteries are used in various applications due to technological innovations and improved manufacturing capabilities. However, zinc-hybrid batteries are the fastest-growing category due to increasing manufacturing capacity and technological advancements.

Grid Scale Battery Power Generation Insights

The grid scale battery market segmentation, based on power generation, includes power capacity rating and energy capacity. The power capacity rating category generated the most income (70.4%). A battery's power rating describes the greatest amount of power it can continuously produce instantly. It can be contrasted with a power plant's nameplate rating. However, energy capacity is the fastest-growing category owing to technological advancement and improved manufacturing capabilities.  

Figure 1: Grid Scale Battery Market, by Power Generation, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Grid Scale Battery Application Insights

The grid scale battery market segmentation, based on application, includes peak shaving, load shifting, renewable sources integration, and backup power. The renewable sources integration category generated the most income as grid scale battery storage is likely to rely heavily on renewable energy sources such as solar and wind over the forecast period. However, load shifting is the fastest-growing category as the operator uses grid scale battery storage systems to provide load-shifting services to mitigate the uncertainty and variability of wind power projects on a grid scale.

Grid Scale Battery Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North American grid scale battery market will dominate due to the availability of favorable government policies, tax breaks for renewable energy deployment, and increasing investments from public and private companies will boost the market growth in this region. Further, the US grid scale battery market held the largest market share, and the Canadian grid scale battery market was the fastest-growing market in the North American region.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Grid Scale Battery Market Share By Region 2022 (Usd Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe's grid scale battery market accounts for the second-largest market share due to the ongoing initiatives and investments by the government to augment industry growth in this region. Further, the German grid scale battery market held the largest market share, and the UK grid scale battery market was the fastest-growing market in the European region.

The Asia-Pacific grid scale battery market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to the increasing number of industries in the region that demand a high amount of energy, and heavy R&D investments in new energy storage technologies drive the market growth in this region. Moreover, China’s grid scale battery market held the largest market share, and the Indian grid scale battery market was the fastest-growing market in the Asia-Pacific region.

Grid Scale Battery Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development to expand their product lines, which will help the Grid Energy Storage Market grow even more. Market participants are also undertaking numerous strategic activities to enhance their global footprint, with important market developments including new product launches, mergers and acquisitions, contractual agreements, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the grid scale battery industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the grid scale battery industry to benefit clients and increase the market sector. Major players in the grid scale battery market, including Samsung SDI CO., LTD. (South Korea), NGK Insulators, LTD. (Japan), BYD Company Ltd (China), General Electric (U.S.), Redflow Limited (Australia), and others, are attempting to increase market demand by investing in research and development operations.

Tesla Inc is an automotive and energy company. It designs, develops, manufactures, sells, and leases electric vehicles, energy generation, and storage systems. The firm produces and sells the Model Y, Model 3, Tesla Semi, Model X, Model S, Cybertruck, and Tesla Roadster vehicles. Tesla also installs and maintains energy systems, sells solar electricity, and delivers end-to-end clean energy products, such as generation, storage, and consumption. It markets and sells vehicles to consumers via company-owned stores and galleries. The firm has manufacturing facilities in the US, Germany, and China and has operations across the Asia Pacific and Europe. In April 2022, Tesla unveiled its Megapack project, which consists of 360 MWh of energy storage capacity utilized in concert with a solar farm to help power 60,000 homes.

24M Technologies Inc. R&D electronic products. The Company develops and researches cost-effective batteries, storage systems, and related products. 24M serves customers in the Massachusetts region. In May 2021, 24M raised USD 56.8 million in Series E funding to commercialize its capital-efficient, simple, and low-cost semisolid manufacturing process and expand its technology development programs for grid storage and electric vehicle applications. Global trading company ITOCHU Corporation led the financing. As part of the financing and funding, Hiroaki Murase, general manager of ITOCHU's sustainable energy business division, will join the board of 24M.

Key Companies in the Grid Scale Battery market include

• Samsung SDI CO., LTD. (South Korea)


• NGK Insulators, LTD. (Japan)


• BYD Company Ltd (China)


• General Electric (U.S.)


• Redflow Limited (Australia)


• Ambri Incorporated (U.S.)


• VRB Energy (Canada)


• 24M Technologies, Inc. (U.S.)


• Lockheed Martin Corporation (U.S.)


• FZSONICK SA (Switzerland)


• KORE Power, Inc. (U.S.)

Grid Scale Battery Industry Developments

September 2022: NGK Insulators connected an extensive sodium-sulfur (NAS) battery energy storage system at a former LNG terminal in Japan. Toho Gas, a combined utility company serving 54 cities in three prefectures in central Japan, has ordered the 11.4 MW/69.6 MWh NAS system for use at the Tsu LNG Station in Mie Prefecture. The completion is scheduled for FY2025.

September 2022: Redflow collaborated with the University of Queensland within the Australian Research Council (ARC) Research Hub for Safe and Reliable Energy Storage, managed by Deakin University. The "Extending Flow Battery Operation" research project was identified to develop a deeper understanding of the electrolyte chemistry and electrode materials to further expand the Zinc Bromine Module (ZBM) operational characteristics.

June 2022: KORE Power announced its decision to provide batteries for a 10 MW/20 MWh battery storage project under development between ABB and Ecotricity. The project is focused on advancing the national grid in the U.K. toward its 2050 net-zero goal. ABB's BESS would be installed at Ecotricity's current 6.9 MW wind farm in Gloucestershire in 2023 to stabilize the grid while providing an effective way to capture clean energy.

January 2024

The private equity firm Gaw Capital Partners and a subsidiary of the shipping and energy business BW Group announced today that they had established an investment platform for energy storage in Australia with the intention of jointly developing 1.6 gigawatts of battery projects. The statement was released in a statement that was released today.

Gaw Capital and BW ESS will be the owners of the business that will be known as Valent Energy. Oliver Yates, who previously held the position of chief executive officer of the Clean Energy Finance Corporation (CEFC), will serve as the chairwoman of the organization. The new organization, which will be running operations over the whole of Australia, will be responsible for the development and ownership of the infrastructure for grid-scale battery energy storage systems (BESS).

Gaw Capital and BW ESS will jointly invest about AUD 2 billion, which is equal to USD 1.32 billion or EUR 1.21 billion, in order to install the projects and considerably develop Valent Energy's pipeline. This will be done in order to fulfill the joint commitment. Seven battery projects and one solar photovoltaic (PV) scheme are presently included in the portfolio of the platform. In addition, the platform has one solar PV scheme. The list of BESS assets includes the 240-MW Mornington project, the 250-MW Pine Lodge project, and the 120-MW Apsley project, all of which are located in the states of Victoria and New South Wales. The development permits for these projects have already been obtained, and they are prepared to be considered shovel-ready.  

"With the rollout of substantial government policy to support battery projects and the record periods of negative prices during daytime solar floods, the moment could not be a more opportune time for Valent to build large scale batteries," said Oliver Yates in an interview.

Grid Scale Battery Market Segmentation:

Grid Scale Battery Type Outlook

• Lithium-ion Batteries


• Flow Batteries


• Zinc-Hybrid Batteries


• Sodium-Based Battery

Grid Scale Battery Power Generation Outlook

• Power Capacity Rating


• Energy Capacity

Grid Scale Battery Application Outlook

• Peak Shaving


• Load Shifting


• Renewable Sources Integration


• Backup Power

Grid Scale Battery Ownership Model Outlook

• Third party owned


• Utility owned

Grid Scale Battery Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America