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MOXA: The inevitability of the era of commercialization of energy storage

 

  Over the next three years, 98% of new electricity generation will come from renewable sources.

--"2023 Electricity Market Report"

International Energy Agency (IEA)

Due to the unpredictability of renewable energy generation such as wind and solar power, we need to build megawatt-scale battery energy storage systems (BESS) with rapid response capabilities. This article will evaluate whether the BESS market can meet the growing consumer demand from aspects such as battery costs, policy incentives, and market entities.

01 Lithium battery cost reduction: the only way for BESS commercialization

As the cost of lithium-ion batteries falls, the energy storage market continues to grow. Battery costs dropped by 90% from 2010 to 2020, making it easier for BESS to enter the market and further promoting the development of the energy storage market.

https://www.tongkongtec.com/moxa/

02 Legal and regulatory support: Global efforts to promote the development of BESS

 

In recent years, in order to promote the construction and application of energy storage systems, major energy producers such as the United States, the United Kingdom, the European Union, Japan, and China have taken legislative measures and introduced various incentives and tax exemption policies. For example, in 2022, the United States passed the Inflation Reduction Act (IRA), which plans to allocate US$370 billion to develop renewable energy and combat climate change. Energy storage equipment can receive investment subsidies of more than 30%. In 2021, China clarified its energy storage industry development goal, that is, by 2025, the installed scale of new energy storage capacity will reach 30 GW.

https://www.tongkongtec.com/moxa/

03 Diversified market entities: BESS commercialization enters a new stage

 

Although the BESS market has not yet formed a monopoly, some early entrants have occupied a certain market share. However, new entrants are continuing to arrive. It is worth noting that the report "Value Chain Integration is Key to Battery Energy Storage" released in 2022 pointed out that the market share of the seven leading battery energy storage suppliers fell from 61% to 33% that year. This suggests that BESS will be further commercialized as more market players join the effort.

https://www.tongkongtec.com/moxa/

BESS has gone from little-known to initially popular, thanks to IT/OT integration.

The development of clean energy has become a general trend, and the BESS market will usher in a new round of rapid growth. It has been observed that leading battery cabinet manufacturing companies and BESS startups are constantly seeking new breakthroughs and are committed to shortening the construction cycle, extending operation time, and improving network system security performance. AI, big data, network security, etc. have therefore become key elements that must be integrated. To gain a foothold in the BESS market, it is necessary to strengthen IT/OT convergence technology and provide better energy storage solutions.

Post time: Dec-29-2023
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