Australia Energy Storage Systems Market Size
| Study Period | 2021 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2021 - 2022 |
| CAGR | 27.56 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Australia Energy Storage Systems Market Analysis
The Australian energy storage systems (ESS) market is expected to reach USD 8,656 million by the end of the current year, and it is projected to register a CAGR of -27.56% during the forecast period.
Although the market studied was affected by the COVID-19 pandemic in 2020, it recovered and reached pre-pandemic levels.
The decrease in prices of batteries and rapid adoption of renewable energy supported by government initiatives are expected to drive the growth of the market studied during the forecast period.
However, high initial capital requirements, along with the high cost of the components, are anticipated to restrain the demand for energy storage from the residential and small-scale commercial sectors, thus, inhibiting the growth of the market studied.
The development of new advanced batteries and the increasing commercialization of compressed air energy storage (CAES) technology is expected to create several opportunities for Australian energy storage systems (ESS) providers.
Australia Energy Storage Systems Market Trends
This section covers the major market trends shaping the Australia Energy Storage Systems Market according to our research experts:
Battery Energy Storage Systems (BESS) Expected to Witness Significant Growth
Battery energy storage is considered a critical technology in transitioning to a sustainable energy system. The battery energy storage systems regulate voltage and frequency, reduce peak demand charges, integrate renewable sources, and provide a backup power supply. Batteries are crucial in energy storage systems and are responsible for around 60% of the system's total cost.
In 2021, the country witnessed significant growth in rooftop solar PV installations. The number of solar PV installations increased from 378.45 thousand units in 2020 to 389.57 thousand units in 2021, a growth of more than 2.5%.
Due to declining prices, lithium-ion batteries have been witnessing a massive demand in the Australian BESS market. Lithium-ion batteries are expected to hold the most significant share in the battery energy storage market, as they require less maintenance, are lightweight, have a reliable cycle life, and have high energy density in terms of volume and high charge/discharge efficiency.
According to the Clean Energy Council, in 2021, 34,731 energy storage batteries with a combined capacity of 347 MWh were installed in Australia, witnessing a growth of 45.7% compared to 2020.
According to Clean Energy Council, there were 30 large-scale batteries under construction by the end of 2021, representing more than 921 MW of new storage capacity. The battery energy storage systems use utility grids to supply electricity to consumers, reducing energy bills. The battery energy storage systems used in utilities are a cost-effective alternative to conventional infrastructure, especially in helping substations and transmission and distribution (T&D) lines meet the growing demand. These factors are contributing to the growth of the BESS market in Australia.
For instance, in February 2021, CEP Energy announced the largest proposed grid-scale battery project in Australia, with a rated output of up to 1,200 MW. The construction of the grid was anticipated to begin in early 2022 and is expected to be in operation by 2023. Thus, upcoming projects in Australia are expected to boost the demand for battery energy storage systems (BESS) during the forecast period.
Therefore, based on the above factors, battery energy storage systems (BESS) are expected to witness significant demand in the country during the forecast period.
Growing Renewable Energy Sector Expected to Drive the Market
Renewable power is an intermittent energy source. Therefore, electricity storage is essential to maintain the constant power distribution of generated renewable power. Thus, compared to conventional electricity generation sources, renewable power has a higher need for energy storage.
The cost of renewable power generation in Australia is continuously declining, mainly for solar power. The primary reasons behind the declining costs of renewable power generation are innovations in the manufacturing and installation of PV power generation, improved wind turbine materials and designs, and economies of scale. Due to lower costs, renewable energy is becoming competitive and cheaper than conventional power plants.
As of 2021, renewable energy sources accounted for 10.3% of Australian energy consumption. In 2021, Australia's renewable electricity generation was about 61.3 TWh, 22.84% higher than the entire renewable electricity generation in 2020. In 2021, 22.9% of Australia's total electricity generation was from renewable energy sources, including solar (9%), wind (9%), and hydro (6%).
The renewables share in Australia's National Electricity Market (NEM) power generation mix is expected to double to 41% by 2030. With the growing share of renewables, the demand for energy storage applications is also expected to grow during the forecast period.
The country's government and the major private players are focusing on developing large-utility-scale renewable power projects. The large-scale solar sector's momentum witnessed 1.2 GW capacity installations in 2021, increasing the total large-scale solar capacity to more than 5.1 GW. The large-scale solar industry is expected to perform strongly in the next couple of years, with 42 large-scale solar farms under construction at the end of 2021.
Therefore, growth in the renewable energy sector with government assistance is expected to drive the energy storage systems market's growth during the forecast period.
Australia Energy Storage Systems Industry Overview
The Australian energy storage systems (ESS) market is moderately fragmented. Some of the major players in the market (in no particular order) include Pacific Green Technologies Group, LG Energy Solution Ltd, Tesla Inc., Century Yuasa Batteries Pty Ltd, and EVO Power Pty Ltd, among others.
Australia Energy Storage Systems Market Leaders
-
Pacific Green Technologies Group
-
LG Energy Solution Ltd
-
Tesla Inc.
-
EVO Power Pty Ltd
-
Century Yuasa Batteries Pty Ltd
*Disclaimer: Major Players sorted in no particular order
_Market.webp)
Australia Energy Storage Systems Market News
On January 10, 2022, Woodside Energy submitted a proposal for a 500 MW solar facility and a 400 MWh battery storage to the Western Australian Environmental Protection Authority. The facility would cover 975.6 ha within a development envelope of 1,100.3 ha. According to the proposal, the solar facility will install 1 million solar panels and support infrastructures, such as a battery energy storage system and an electrical substation.
In August 2021, Wärtsilä was supposed to supply a battery energy storage system (BESS) to AGL Energy, one of Australia's leading integrated energy companies. The 250 MW/250 MWh system will be installed at Torrens Island in South Australia. When installed, the system is expected to support a broad portfolio of generating assets, both thermal and renewable, and help Australia decarbonize and transition toward a 100% renewable energy future.
Australia Energy Storage Systems Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Market Size and Demand Forecast in USD million, till 2027
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.2 Restraints
4.6 Supply Chain Analysis
4.7 PESTLE Analysis
5. MARKET SEGMENTATION
5.1 By Type
5.1.1 Battery Energy Storage System (BESS)
5.1.2 Pumped-storage Hydroelectricity (PSH)
5.1.3 Other Types
5.2 By End User
5.2.1 Residential
5.2.2 Commercial and Industrial
5.2.3 Utility Scale
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Pacific Green Technologies Group
6.3.2 LG Energy Solution Ltd
6.3.3 Tesla Inc.
6.3.4 Enphase Energy Inc.
6.3.5 Century Yuasa Batteries Pty Ltd
6.3.6 EVO Power Pty Ltd
6.3.7 Battery Energy Power Solutions Pty
6.3.8 PowerPlus Energy
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Australia Energy Storage Systems Industry Segmentation
An energy storage system (ESS) is a device or group of devices assembled to convert the electrical energy from power systems and store energy to supply electrical energy at a later time when needed.
The Australian energy storage systems (ESS) market is segmented by type and end user. By type, the market is segmented into battery energy storage systems (BESS), pumped-storage hydroelectricity (PSH), and other types. By end user, the market is segmented into residential, commercial and industrial, and utility scale. For each segment, the market sizing and forecasts have been done based on revenue (USD million).
| By Type | |
| Battery Energy Storage System (BESS) | |
| Pumped-storage Hydroelectricity (PSH) | |
| Other Types |
| By End User | |
| Residential | |
| Commercial and Industrial | |
| Utility Scale |
Australia Energy Storage Systems Market Research FAQs
What is the current Australia Energy Storage Systems (ESS) Market size?
The Australia Energy Storage Systems (ESS) Market is projected to register a CAGR of 27.56% during the forecast period (2024-2029)
Who are the key players in Australia Energy Storage Systems (ESS) Market?
Pacific Green Technologies Group, LG Energy Solution Ltd, Tesla Inc., EVO Power Pty Ltd and Century Yuasa Batteries Pty Ltd are the major companies operating in the Australia Energy Storage Systems (ESS) Market.
What years does this Australia Energy Storage Systems (ESS) Market cover?
The report covers the Australia Energy Storage Systems (ESS) Market historical market size for years: 2021, 2022 and 2023. The report also forecasts the Australia Energy Storage Systems (ESS) Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Australia Energy Storage Industry Report
Statistics for the 2024 Australia Energy Storage market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Australia Energy Storage analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
