South America Battery Energy Storage System Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | > 9.50 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
South America Battery Energy Storage System Market Analysis
The South America Battery Energy Storage System Market is expected to register a CAGR of more than 9.5% during the forecast period.
COVID-19 negatively impacted the market in 2020. Currently, the market is likely to reach pre-pandemic levels.
- Over the long term, factors like increased penetration of renewable energy to reduce dependence on fossil fuels are expected to drive the market during the forecasted period.
- On the other hand, high initial capital investments are a major restraint hindering the market growth.
- Nevertheless, the increasingly flexible grid operations and the latest technological developments in battery energy storage systems are expected to create enormous opportunities for Battery Energy Storage deployment.
- Chile is expected to dominate the South America battery energy storage system market across the region during the forecast period.
South America Battery Energy Storage System Market Trends
This section covers the major market trends shaping the South America Battery Energy Storage System Market according to our research experts:
Lithium-ion Segment to Dominate the Market
- South America has some of the world's greatest lithium reserves. The lithium triangle in South America consists of Chile, Argentina, and Bolivia. These regions are estimated to have almost half of the world's lithium reserves.
- In 2021, Chile and Argentina produced almost 30% of the global lithium demand, which was about 26 thousand tons and 6 thousand tons, respectively. Even though the initial investments and time for extraction of lithium reserves are relatively high in these regions, thereafter production is cheaper than techniques.
- Lithium-ion battery storage systems are in high demand in the South America battery energy storage market because they are advanced and widely available solutions for storing energy from renewable energy sources in the region.
- For instance, in May 2022, Global energy storage group NHOA, formerly Engie EPS, was awarded a 30MWh Battery Energy Storage System (BESS) to be developed in Peru. This BESS is expected to be installed at the 800MW Chilca thermal power plant in Peru, where it will deliver primary frequency regulation services for the country's grid.
- Moreover, Lithium-ion batteries are safer than other battery technologies, and all the battery manufacturers ensure safety measures and standards to protect consumers in case of a battery failure.
- Therefore, owing to the abovementioned points, the Lithium-ion segment is expected to dominate the South America Battery Energy Storage System Market.
Chile to Dominate in the Market
- Chile has become a regional leader in lithium-ion battery energy storage systems to manage its renewable energy reserves more efficiently. The country is home to a huge amount of lithium reserves, most of which are found in the Atacama Desert in the northern part of the country.
- Chile's renewable energy installed capacity reached 14.89 GW in 2021. In recent years renewable energy projects have increased in Chile due to increasing priority on energy security and minimizing the reliance on conventional energy sources.
- Since renewable resources such as solar and wind generate power intermittently and at different levels, storing this energy during peak demand is critical. As a result, battery energy storage systems (BESS) are becoming essential to renewable energy projects. The rapid growth of the renewable energy sector is expected to be one of the most potent drivers in Chile.
- For instance, in September 2022, Canadian Solar Inc announced that it was awarded a 253 MWp solar plus 1,000 MWh battery energy storage project in Chile's public tender CNE 2022/01 held by Chile's Energy National Commission (CNE) in July 2022.
- Developments in the photovoltaic market, alongside implementing more efficient battery energy storage systems, are positioning Chile as a regional leader in this field.
South America Battery Energy Storage System Industry Overview
The South America Battery Energy Storage System Market needs to be more cohesive. Some of the major key players in the market (not in particular order) include Enel S.p.A., AES Gener S.A., BYD Co Ltd, Engie SA, and Acumuladores Moura S. A.
South America Battery Energy Storage System Market Leaders
-
Enel S.p.A.
-
AES Gener S.A.
-
BYD Co Ltd
-
Engie SA
-
Acumuladores Moura S. A.
*Disclaimer: Major Players sorted in no particular order
South America Battery Energy Storage System Market News
- December 2022: Engie Energía Chile announced plans to build a 638 MWh battery energy storage system at the Coya solar plant in Chile's northern Antofagasta region.
- May 2022: Innergex Renewable Energy selected Mitsubishi Power's Emerald Storage Solution for its Battery Energy Storage System (BESS) projects in Chile's Atacama Desert. The contracts are for Innergex's 68MW Salvador and 50.6MW San Andres solar facilities, which are expected to come online in 2023.
South America Battery Energy Storage System 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 billion, 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 Porter's Five Force Analysis
4.7.1 Bargaining Power of Suppliers
4.7.2 Bargaining Power of Consumers
4.7.3 Threat of New Entrants
4.7.4 Threat of Substitute Products and Services
4.7.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION & ANALYSIS
5.1 Technology
5.1.1 Li-Ion Battery
5.1.2 Lead Acid Battery
5.1.3 Others
5.2 Application
5.2.1 Residential
5.2.2 Commercial and Industrial
5.2.3 Utility
5.3 Geography
5.3.1 Brazil
5.3.2 Argentina
5.3.3 Chile
5.3.4 Rest of South America
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 Enel S.p.A.
6.3.2 AES Gener S.A.
6.3.3 BYD Co Ltd
6.3.4 Engie SA
6.3.5 Acumuladores Moura S. A.
6.3.6 LG Chem Brazil, Ltd.
6.3.7 EnerSys
6.3.8 Saft Groupe SA
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
South America Battery Energy Storage System Industry Segmentation
Battery energy storage is considered a critical technology in transitioning to a sustainable energy system. The battery energy storage systems store the generated energy and release it as per end-user requirements. They 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.
The South America Battery Energy Storage System Market is segmented by technology, application, and geography. By technology, the market is segmented into lithium-ion, lead-acid, and others. By application, the market is segmented into residential, commercial and industrial, and Utility. The report also covers the market size and forecasts for the South America Battery Energy Storage System Market across the major countries. The market sizing and forecasts for each segment are based on the revenue (USD Billion).
| Technology | |
| Li-Ion Battery | |
| Lead Acid Battery | |
| Others |
| Application | |
| Residential | |
| Commercial and Industrial | |
| Utility |
| Geography | |
| Brazil | |
| Argentina | |
| Chile | |
| Rest of South America |
South America Battery Energy Storage System Market Research FAQs
What is the current South America Battery Energy Storage System Market size?
The South America Battery Energy Storage System Market is projected to register a CAGR of greater than 9.5% during the forecast period (2024-2029)
Who are the key players in South America Battery Energy Storage System Market?
Enel S.p.A., AES Gener S.A., BYD Co Ltd, Engie SA and Acumuladores Moura S. A. are the major companies operating in the South America Battery Energy Storage System Market.
What years does this South America Battery Energy Storage System Market cover?
The report covers the South America Battery Energy Storage System Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the South America Battery Energy Storage System Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
South America Battery Energy Storage System Industry Report
Statistics for the 2024 South America Battery Energy Storage System market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. South America Battery Energy Storage System analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
