Commercial and industrial energy storage is experiencing a rapid surge in development, according to the White Paper on 2023 China Industrial and Commercial Energy Storage Development. In 2022, the global new energy storage capacity reached an impressive 46.2GW, with industrial and commercial energy storage systems accounting for 4.2GW, or approximately 9.1% of the total global new energy storage capacity. The majority of global industrial and commercial energy storage is concentrated in the United States, Germany, Japan, and China, which together comprise about 79% of the total global installed capacity.

The White Paper forecasts that the newly installed capacity for global commercial and industrial energy storage will reach 1.5GW in 2023. Furthermore, it predicts that the cumulative installed capacity for global commercial and industrial energy storage will reach 11.5GW by 2025, with the United States and China emerging as the two major markets for energy storage.

One of the key factors driving the growth of commercial and industrial energy storage is the decreasing cost of energy storage systems. Battery-grade lithium carbonate prices have been steadily decreasing, with a significant 65.85% reduction from the end-of-December 2022 price to the average price on September 18th, 2023. This reduction in price directly translates to a decrease in battery cell costs. Additionally, increased battery capacity production and market competition have contributed to the decline in energy storage system pricing.

In terms of policies, many regions have introduced measures to promote the growth of industrial and commercial storage. Distributed PV installations and energy storage have received special subsidies in order to encourage their development. The first half of 2023 saw a remarkable year-on-year increase of 108.43% in the newly installed capacity of distributed PV installations. Several regions in China, including Henan, Jiangsu, Shandong, Anhui, and Zhejiang, showed significant growth in the capacity of industrial and commercial storage.

To create a favorable environment for the profitability of commercial and industrial energy storage, various policies have been implemented. The widening price gap between peak and off-peak hours has become a primary source of profit, with increasing arbitrage opportunities. Profit avenues for industrial and commercial storage are also expanding to include demand management and response on the demand side. Discharge subsidies and capacity subsidies are available in some regions, along with investment subsidies in select areas, providing financial support for energy storage projects.

As the demand for electricity rises, commercial and industrial energy storage is becoming an important means of realizing emergency power backup and reducing energy expenditure. Integrated photovoltaic and solar industrial and commercial energy storage systems can successfully shave peak load through PV installations, improving the utilization rate of photovoltaic power and ensuring normal production even during power limit times. As a result, the demand for roof-mounted PV and energy storage is rising among ordinary industrial and commercial users.

Industrial and commercial energy storage systems consist of various components such as PACK batteries, PCS, BMS, and EMS. These systems focus on maximizing self-generation and self-consumption rates of PV installations while reducing electricity expenses for owners. They differ from large-scale energy storage and frequency adjustment power stations, as their main goal is to assist enterprises in conserving energy and lowering emissions.

The domestic government is actively supporting the growth of the industrial and commercial storage market by implementing various measures and encouraging broader applications in this sector. Companies across the supply chain, including lithium battery and system manufacturers, photovoltaic industry, and specialized energy storage integrators, are making proactive investments to meet the growing market demand and accelerate technological advancements in the field of commercial and industrial energy storage.

Will be removed if infringing

Reference website:https://www.energytrend.com