Asia Pacific energy storage systems market is expected to reach $1.6bn in 2017, according to a report published by Frost & Sullivan.
The popularity of battery energy storage systems in grid stabilization, frequency and voltage regulation, and load shifting has added strength to the Asia Pacific energy storage systems market.
The need to store renewable energy for use during peak demand hours has further prompted power utilities to turn to energy storage systems, thereby sustaining market revenues.
The demand for energy storage systems in Asia Pacific was increased due to raise in electricity prices, frequent power outages caused by demand-supply imbalances, and the unsteady production of renewable solar and wind energy.
Frost & Sullivan Energy and Environmental Research Analyst Avanthika Satheesh P said, "The implementation of energy storage systems in smart grid projects in Japan, South Korea, Singapore, and in renewable projects in Australia will accelerate the adoption of battery storage systems."
"The market will continue to grow as governments, especially in Japan and South Korea, provide incentives and subsidies to manufacturers for battery development and commercialization," Satheesh P added.
The market growth in the Asia Pacific region was slowed down due to storage systems’ high cost per kW of advanced battery storage systems, and end-users’ lack of awareness on the advantages of emerging flywheel and super capacitor technologies.
Meanwhile, the equipment manufacturers are developing solutions with improved safety and operability features to gain customer confidence.
As li-ion and sodium sulfur batteries are an inevitable component in advanced and reliable power grids, utilities and customers are likely to install these batteries after the technical glitches are rectified.