The World's #1 Renewable Energy Network for News, Information, and Companies.
Untitled Document

Spurred by Japan, Steady Growth Predicted for Energy Storage Market

On March 17, the Japanese Ministry of Economy, Trade and Industry (METI) announced that it would begin accepting applications for a generous subsidy that it is awarding to consumers who install lithium-ion battery storage systems along with renewable energy systems on their homes or businesses. The subsidy will spark nearly 100 MW of energy storage capacity to be installed in 2014, according to an energy analyst with IHS.

METI is subsidizing up to two-thirds of the upfront costs of 1-kWh or larger stationery lithium ion battery systems that consumers install to back up their PV capacity.  The maximum subsidy is set at ¥1 Million (about US $10,000) for consumers and ¥100 Million (about US $1,000,000) for commercial organizations.  In all, METI has set aside about ¥10 Billion (about US $98 million) for the program.

According to METI, the program is a direct result of its desire to help firm up the grid, which has seen an influx of renewable energy since the country shut down its nuclear fleet in reaction to the Fukishima accident in 2011.  Demand-side energy storage can help reduce overvoltages on the grid that can occur in the afternoon on days of high insolation. It can also encourage consumers to manage their energy use more carefully

Germany is also exploring the “prosumer” energy model by encouraging consumers who are installing PV to include energy storage with their systems. Since the German feed-in tariff for PV is much lower today than it was in the past, it makes sense for Germans installing PV to couple it with energy storage and decide themselves when they want to use their own electricity and when they want to sell it to the grid. Germany also introduced an energy storage subsidy about one year ago.  The subsidy covers 30 percent of the cost of the energy storage system.

Sam Wilkinson, an analyst with energy consultancy IHS, says the moves by these two countries will spark incredible market growth in the energy storage industry.  “Japan’s share of the total global grid-connected storage market — including all interconnection locations — will reach 12 percent in 2014 whilst Germany, which last year initiated a PV energy storage subsidy, will claim an 11 percent share of that market this year,” he said.

Further, renewable energy policies set by these countries have been used as templates across the globe, said IHS.  Wilkinson believes that this has led to “dramatic growth and massive cost reduction” for PV and predicts a similar trajectory for energy storage.

“As such we expect 6 GW of storage to be installed in 2017, with 1.5 GW of this being co-located with utility-scale renewable sources and over 2 GW in behind-the-meter systems, many of which will also include PV systems,” he said.

That growth will lead to energy storage cost reductions on the order of 30 percent by 2017, “allowing them to become economically viable solutions in several markets and applications,” he concluded.

Lead image: Solar and Yen Symbol via Shutterstock

Untitled Document

RELATED ARTICLES

States Already Seek To Delay Clean Power Plan

Andrew Harris, Bloomberg Fifteen states led by coal-rich West Virginia asked a federal court to stall Obama administration rules intended to c...

Campus Flora Fuels Research into Bioenergy-Inspired Energy Storage

Joe McCune, Missouri S&T Dr. Umit Koylu, a professor of mechanical and aerospace engineering at Missouri University of Science and Technology,...

Global Renewable Energy Roundup: China, Kenya, Turkey, India Seeking More Renewables

Bloomberg News Editors China is being encouraged by three industry groups to double the nation’s solar-power goal for 2020 to make up for sh...

Why Smarter Grids Demand Smarter Communications Networks

Mark Madden

Historically, utility networks and communications networks have had little in common.

PRESS RELEASES

Array Technologies’ DuraTrack HZ v3 Continues to (R)evolutionize at SPI

Array Technologies, Inc. (ATI) prepares to showcase its recently launched tracking syst...

Appalachian's Energy Center assists counties with landfill gas to energy projects

The Appalachian Energy Center at Appalachian State University recently completed a proj...

Early Bird Registration Deadline for GRC Annual Meeting is This Week

The deadline for early-bird rates for registration for the biggest annual geothermal ev...

Redesigned HydroWorld.com Video Gallery

Hydropower news and information, and interesting promotional announcements are now avai...

FEATURED BLOGS

Transitioning to Net-Zero Living

Judith and Jeffrey adore living in Belfast, Maine – a quaint harbor town of Belfast, Maine. They previously res...

The True Cost of Electric Vehicles in Australia

In order to avoid increased congestion, further greenhouse warming and lessen Australia’s reliance on imported ...

The Coming Multi-trillion Dollar Energy Investment Drive

In coming years, a multi-trillion dollar low-emission energy investment drive will get underway. Three catalysts wil...

The Perfect Elevator Pitch

The elevator pitch is a concise statement that grabs attention and communicates value, ideally leading to a next step...

FINANCIAL NEWS

Jennifer Runyon is chief editor of RenewableEnergyWorld.com and Renewable Energy World magazine, coordinating, writing and/or editing columns, features, news stories and blogs for the publications. She also serves as conference chair of Renewable ...

CURRENT MAGAZINE ISSUE

Volume 18, Issue 4
1507REW_C11

STAY CONNECTED

To register for our free
e-Newsletters, subscribe today:

SOCIAL ACTIVITY

Tweet the Editors! @jennrunyon

FEATURED PARTNERS



EVENTS

Intersolar North America 2016

Exhibition: July 12 - 14, 2016; Conference: July 11 - 13, 2016 Intersola...

Intersolar South America 2015

Exhibition and Conference: September 1-3, 2015 Intersolar South America ...

ees Europe 2016

Exhibition: June 22-24, 2016; Conference: June 21-22, 2016 ees Europe 20...

COMPANY BLOGS

How To Recruit An Internal Ally

When you’re collecting information for a proposal, the person with...

The Proof Is Not Always In The Pudding

One of the best ways to turn a skeptical prospect into a buyer is to giv...

Pushing Beyond The Cushion

Efficiency projects are all too often viewed as “optional” o...

NEWSLETTERS

Renewable Energy: Subscribe Now

Solar Energy: Subscribe Now

Wind Energy: Subscribe Now

Geothermal Energy: Subscribe Now

Bioenergy: Subscribe Now  

 

FEATURED PARTNERS