EV/HEV Players Will Drive the Stationary Battery Energy Storage Business

Sept. 1, 2015
The recent announcement of Tesla battery storage solution, Powerwall, confirms the trends toward massive deployment of distributed stationary storage systems.

The recent announcement of Tesla battery storage solution, Powerwall, confirms the trends toward massive deployment of distributed stationary storage systems. Tesla's batteries should be available in July, according to the U.S.-based company.

"Automated, compact and simple to install, Tesla's new solution, Powerwall™ offers independence from the utility grid and the security of an emergency backup", explains Yole's Senior Analyst, Energy Conversion & Emerging Materials, Dr Milan Rosina, Yole Développement. And he adds: "The growing of electric vehicle/hybrid electric vehicle (EV/HEV) market is currently reshaping for the stationary battery market".

Under these circumstances, the "More than Moore" market research and strategy consulting company, Yole Développement, releases its new technology & market analysis entitled "Energy Management for Smart Grid, Cities and Building: Opportunities for Battery Electricity Storage Solutions". In this new report, Yole's team confirms the impact of the EV/HEV market on the development and the deployment of the stationary battery electricity storage systems. This analysis also includes market forecast for stationary battery energy storage systems, an overview of the main players as well as an analysis of the services that could be realized by battery ESS for each analyzed segment (renewable energy sources, building, electricity grid …).

Rechargeable batteries are particularly suitable for distributed energy storage. Although using a battery as an energy storage solution is decades old, new battery technologies are still maturing and their future cost decrease is expected to significantly speed up the development and deployment of existing and new technologies and applications, thus leading to new business opportunities. The growing electric vehicle/hybrid electric vehicle (EV/HEV) market is a game changer driving battery performance improvement and cost decrease. The new Tesla positioning on both EV/HEV and stationary batteries helps it to increase the market volume and to reduce the production costs.

The modular characteristic of battery systems means their size and features can be optimized for very different requirements in a multitude of applications. In particular, their fast demand response capability widens the scope of services (frequency regulation, etc.) that could be provided by batteries, compared to other energy storage technologies. Different battery technologies are commercially available, safe, proven, and used in daily life. The same battery technology can be used in many different applications (stationary/portable/transport) enabling lower production cost because of higher cumulated production volume, common battery technology development, and simpler logistics. Decreasing battery cost allows broader deployment in both existing and new applications. There is still great potential for further cost reduction and performance enhancement of battery systems.

"As shown in Yole's report, Energy Management for Smart Grid, Cities & Buildings, the development and cost decrease of lithium-ion batteries, very suitable for applications in transport, will largely be driven by the growing EV/HEV market", details Dr Rosina, Yole.

This strong driving force will result in a battery technology consolidation associated with decreasing market share for more mature battery technologies (lead acid, NiMH…). All energy storage technologies currently under development or already being commercially deployed have to face strong competition from Li-ion batteries that have the advantage of high energy density, high power density, high modularity, and decreasing costs.


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