Australia’s energy storage market to reach 244MW by 2020

Source: GTM Research

In Australia, high PV penetration coupled with expensive electricity rates will fuel the growth of energy storage across the country. According to GTM Research’s latest report, The Australian Energy Storage Market: Downstream Drivers and Opportunities, the Australian energy storage market will reach 244 megawatts of annual installed capacity by 2020.
 
Residential customers with high retail electricity prices -many with oversized solar PV systems- will soon be jolted by paltry solar export tariffs that are slated to replace the expiring high feed-in tariffs. By 2020, residential energy storage in Australia will be an annual 132-megawatt market.

GTM Research expects the residential market to be the biggest growth driver for Australia’s energy storage market and forecasts the market to explode from 1.9 megawatts in 2015 to 44 megawatts in 2016. Residential customers with high retail electricity prices -- many with oversized solar PV systems -- will soon be jolted by paltry solar export tariffs that are slated to replace the expiring high feed-in tariffs. By 2020, residential energy storage in Australia will be an annual 132-megawatt market.

Brett Simon, an energy storage analyst at GTM Research and the report’s author, notes the role of multiple players entering Australia’s market. “In mid-2015, a significant number of storage system vendors announced residential products for the Australian market. Some of these products are available already, and more will enter the market in early 2016. Furthermore, it’s notable that Australia’s electricity retailers are starting to offer energy storage systems for their customers, including major players like Ergon Energy, AGL, and Origin Energy.”

Australia’s commercial market will also experience significant growth in the next year. The report forecasts 23 megawatts in 2016, up from just 1.4 megawatts in 2015. High demand charges and incentives in South Australia will increase the uptake of energy storage in the near term.

“Storage vendors are also eyeing the C&I market,” notes Simon. “Demand-charge management is already a viable value stream for a significant number of C&I customers. Furthermore, as storage system costs continue their rapid decline, the economic case for C&I storage will grow even stronger.”

Today, the utility-scale storage is the largest market segment in Australia. However, this is rapidly changing. GTM Research forecasts 20 megawatts of utility-scale solar will be deployed in 2020, just 10 percent of the country’s total for the year.

According to the report, Australia’s energy storage market will grow from $8 million (USD) in 2013 to $448 million by 2020.



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