European Market Boosts BESS Strength

Despite challenges in the semiconductor and automotive sectors, the global energy storage market showed resilience in the first quarter of 2024, as reported by analysts at Interact Analysis.

Shirly Zhu, principal analyst at Interact Analysis, highlighted the increasing deployments of Battery Energy Storage Systems (BESS) in emerging markets and the surge in announcements of 100-megawatt-scale projects. Notably, Lion Storage unveiled its ambitious BESS project named 'Mufasa' in the Netherlands, boasting a capacity of 364 MW/1,457 MWh, making it the largest BESS in the country.

Neoen and Nidec also made waves by announcing the construction of a 9 MW/93.9 MWh BESS project, set to be the largest in both Sweden and Northern Europe. This project is expected to be operational by the first half of 2025, signaling a significant milestone in the region's energy storage landscape.

Throughout the quarter, BESS projects continued to dominate the energy storage sector, with a few Pumped Hydro Storage (PHS) projects gaining traction. Countries like Malaysia made headlines with the launch of their first utility-scale BESS project, boasting a substantial capacity of 400 MWh.

Leading the charge in energy storage expansion, countries such as Germany and Italy announced or approved over 1 GW of BESS projects each in the first quarter. The Netherlands also joined the fray by revealing plans for its largest BESS project to date, with a capacity of 364 MW/1,457 MWh, slated for commercial operation in 2026.

Emerging markets are also stepping up their BESS game, with Poland, Romania, Bulgaria, and Greece all issuing tenders for BESS projects in the first quarter. Poland, in particular, saw Greenvolt emerge as the top winner of the energy storage tender, securing 6 projects totaling 1.2 GW.

Greece, following its initial energy storage project bidding round in 2023, announced the winners of the second round in early 2024, featuring 11 BESS projects with a combined capacity of nearly 300 MW. Similarly, Romania and Bulgaria initiated their first BESS project bidding rounds, aiming for project scales of 240 MW/480 MWh and 350 MW, respectively.

In Eastern Europe, countries like Romania and Poland have set ambitious targets for battery energy storage deployment by 2025. These nations are implementing policies to encourage investment in energy storage technologies, aligning with the broader goal of achieving carbon neutrality and meeting rising energy demands.

Australia emerged as a frontrunner in energy storage deployments, with over 3.5 GW of energy storage projects in the first quarter, of which BESS projects accounted for more than 2.1 GW, representing nearly 60% of the total. These projects are slated to come online between 2025 and 2026, further solidifying Australia's position in the global energy storage market.

One standout project in Australia is the Australia-Asia PowerLink initiative by SunCable, aiming to establish the world's first intercontinental power grid. Despite facing funding challenges due to SunCable entering administration, the Australian government remains optimistic about securing new investments for the project. The scheme includes solar photovoltaic arrays generating 17-20 GW (peak), 36-42 GWh of energy storage, and an 800km HVDC transmission line, with plans to supply 15% of Singapore's energy needs via a 4,200km subsea cable.

Sources: Interact Analysis