The European Association for Storage of Energy (EASE) and European energy research company Delta-EE, have launched the fourth edition of the European Market Monitor on Energy Storage (EMMES).
The report demonstrates the European market grew by a total of 1 GWh in 2019, a significant slow-down compared to 2018. Front-of-meter installations slowed dramatically in 2019, while residential behind-the-meter capacity was the fastest growing market segment.
The EMMES also highlights that 2018 saw a particularly rapid increase in front-of-the-meter projects, partly driven by Enhanced Frequency Response (EFR) tenders, bringing significant levels of storage to market. This resulted in higher competition, lower prices and revenue streams partly explaining the slowdown in rate of growth in 2019.
Patrick Clerens, EASE Secretary General said, “The message is clear: even if energy storage is a key enabler of the energy transition and clearly seen as a major tool to achieve the emissions targets linked to the Paris agreement, more support is needed. Customers, governments and the energy industry are keen to see the market develop and provide more value to the energy system.
“The “Clean Energy for All Europeans” Package (CEP) is an important step in this process by creating, amongst other things, a clear definition for storage, which should allow energy storage to reach its full potential fast.”
The report provides an analysis of the implementation of the CEP in Europe. The CEP will create a stronger regulatory framework for energy storage across Europe. These regulatory changes occur while consumers in both the residential and Commercial & Industrial (C&I) segments show rising interest in storage as technology costs fall and feed-in-tariffs are phased out, notes the report.
Robin Adey-Johnson, Energy Storage and Flexibility Analyst at Delta-EE added, “Storage remains a young market and the regulatory landscape is trying to catch up. So, year-on-year fluctuations in market growth are not unexpected. But we see strong underlying drivers and we expect further market expansion in the early 2020s as regulation stabilises and revenue streams mature.”
Originally published on smart-energy.com