According to The European Association for Storage of Energy (EESA), the global installed capacity of energy storage systems grew at an average annual rate of over 85% from 2017 to 2023. Since 2020, the CR3 regions (China, the U.S., and Europe) have consistently accounted for over 80% of the newly installed capacity in the global energy storage market, with the proportion reaching a record high of 88% in 2023. And industrial and commercial (i&c) energy storage has maintained high-speed growth. According to data, the average annual growth rate of global industrial and commercial energy storage from 2021 to 2023 reached 169%.
Overview:
What is the industrial and commercial energy storage system?
Why is industrial energy storage predicted to have a good market in Europe in the next few years?
Industrial and Commercial (i&c) energy storage usually refers to energy storage systems deployed in industrial parks or industrial and commercial users, which optimize energy use by storing and releasing electrical energy, improve the reliability and flexibility of the power system, and achieve efficient use of energy.
What is the type of industrial and commercial energy storage system?
According to the scenario used, industrial and commercial energy storage systems can be briefly divided into the following categories：
In cooperation with industrial and commercial photovoltaic power generation systems, through the installation of photovoltaic + energy storage to achieve self-use of electricity, improve the utilization of clean energy.
Independent of the photovoltaic power generation system, mainly for scenarios that are not suitable for the installation of large-scale distributed photovoltaic, such as commercial buildings, schools, hospitals, etc., through the energy storage system, to achieve the purpose of reducing electricity prices.
In the form of optical storage unit, direct current is directly charged to the battery through the photovoltaic controller, and alternating current is converted to direct current through PCS and charged to the battery.
Composed of photovoltaic power generation system (including photovoltaic power generation module and grid-connected inverter) and energy storage power generation system (including battery pack, PCS, BMS, etc.), the direct current emitted by photovoltaic power generation module is converted into AC power supply load or charge battery pack through grid-connected inverter.
At present, overseas industrial and commercial (i&c) energy storage is mainly concentrated in the European market. For the European market, industrial and commercial energy storage is an important supplement and partial replacement for household energy storage in solving the problem of regional power balance.
Due to the maturity of household energy storage products (For more information, please refer to our article on home energy storage), there are currently many cases in overseas markets where household energy storage products are used for small-scale industrial and commercial scenarios. However, using household energy storage for industrial and commercial storage scenarios does not have advantages in cost.
Local electricity pricing policies and subsidy policies encourage users who using large electricity to form "self-owned power plants", and adopting “photovoltaic + energy”(briefly called industrial can commercial energy storage) storage for themselves can significantly reduce electricity bills. Moreover, negative electricity prices often occur in Europe.
During peak periods of wind or photovoltaic power generation, the voltage and frequency of the power grid are high, and negative electricity prices mean that electricity consumption can actually generate profits, while transferring electricity back to the grid can result in fines.
It is known that electricity prices in Europe are mainly composed of purchase price, network fee, energy tax, and value-added tax. New energy can bring a certain proportion of energy tax reduction. The ratio of purchase price: network fee: energy tax is about 1:1:1. Photovoltaic distribution and storage for personal use can save network fees.
With the continuous increase in the penetration rate of renewable energy such as wind power and photovoltaics in Europe, when the amount of new energy generation is large, the grid price is low, and energy storage can play a significant role in energy shifting. In particularly, industrial and commercial energy storage, such a large-capacity energy storage system, is more conducive to them to avoid these problems. Except for a few countries such as the Netherlands where the buying and selling electricity prices are 1:1, the buying and selling electricity prices in other European countries are very high.
At the same time, due to the early development of electrification in developed countries in Europe and America, the problem of power grid aging has become more severe. With the integration of a large amount of wind and photovoltaic power, problems such as small grid scale, outdated equipment, and insufficient connections are becoming increasingly severe.
However, the progress of power infrastructure renovation and upgrading is still relatively slow, and the waiting time for transformer expansion is long. Therefore, Industrial and commercial energy storage can solve the problem in a timely manner. In the next two years, the overseas industrial and commercial energy storage market will return to true industrial and commercial energy storage products.
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