AUSTRALIA ENERGY STORAGE MARKET

KEY FINDINGS

• The Australia energy storage market is undergoing significant transformation driven by declining costs of energy storage technologies, rapid growth in renewable energy installations, and ambitious government targets for clean energy adoption. The market is poised for substantial expansion in the coming years.

• Battery Energy Storage Systems (BESS) are expected to witness significant growth, fueled by increasing demand for grid stability, energy independence, and integration of renewable energy sources. Lithium-ion batteries, in particular, are experiencing massive demand due to their declining prices and high energy density.

• Key drivers of the Australia energy storage market include falling costs of lithium-ion batteries, government incentives and funding for renewable energy projects, and the need to meet ambitious clean energy targets. Increasing adoption of rooftop solar PV installations and utility-scale battery energy storage projects also contribute to market growth.

• The primary target for the Australia energy storage market includes both residential and commercial sectors, with a focus on regions experiencing high levels of renewable energy adoption and grid instability. Additionally, utility-scale battery energy storage projects in remote areas and renewable energy zones present significant growth opportunities.

• Australia makes up less than 3% of total global installations for battery energy storage and is the seventh largest market globally. By 2030, it is expected to comprise 7% of global installations and become the third largest market.

• Up to 2027, the IEA forecasts Australia’s renewable energy capacity to expand by 85% to reach 40 gigawatts (GW), Due to introduction of ambitious targets and increased clean energy funding at federal and state levels, PPAs, and new projects announced in the renewable energy zones (REZ).

• Government initiatives aimed at modernizing the grid infrastructure and promoting grid flexibility are creating opportunities for energy storage deployment. Integration of advanced grid management technologies such as smart meters, demand response systems, and microgrids is enhancing the role of energy storage in balancing supply and demand.

• The number of solar PV installations increased from 389.57 thousand units in 2021 to 409.57 thousand units in 2022, a growth of more than 2.5%.

• A new roadmap published by the Commonwealth Scientific and Industrial Research Organisation (CSIRO) highlighted that a 10-14x increase in energy storage capacity will be needed in the National Electricity Market (NEM) in the years 2025 and 2030.

• Ongoing technological advancements in energy storage systems, including improvements in battery chemistry, energy density, and cycle life, are driving increased efficiency and performance. Innovations such as flow batteries and solid-state batteries are gaining traction for their potential to address scalability and safety concerns.

• In 2023, Australia saw a record surge in utility-scale battery energy storage projects above 10 MWh, while residential and commercial installations also reached new highs.

• A record 57,000 residential battery energy storage systems, with a combined capacity of 656 MWh, were installed in Australian homes in 2023. About 250,000 Australian homes, totaling 2,770 MWh, now have battery systems.

• The ratio of battery installations to solar installations was also up in 2023, climbing to 17%, with one energy storage system installed for every six rooftop PV systems.

AUSTRALIA ENERGY STORAGE MARKET OVERVIEW

The energy storage market in Australia has surged in recent years, driven by a combination of factors including the rapid expansion of renewable energy capacity, grid modernization initiatives, and a growing emphasis on energy resilience and sustainability.

Renewable energy integration, particularly from solar and wind sources, has propelled the need for energy storage systems to manage intermittency and balance supply and demand. Government support through incentives, subsidies, and regulatory reforms has further accelerated market growth, fostering the development of large-scale projects and stimulating investment in residential and commercial applications. 

Notable projects like the Hornsdale Power Reserve have showcased the effectiveness of energy storage in stabilizing the grid and providing ancillary services. Technological advancements, especially in lithium-ion batteries, have improved performance and lowered costs, driving widespread adoption.

However, challenges such as infrastructure investment, regulatory barriers, and sustainable battery materials persist, presenting opportunities for innovation and collaboration within the industry. Despite these challenges, the energy storage market in Australia continues to expand, playing a vital role in the country's transition towards a more resilient and sustainable energy future.

INTRODUCTION TO AUSTRALIA ENERGY STORAGE MARKET

As a means of supporting our existing electricity networks, facilitating the effective operation of electricity markets, enhancing the stability of our grid as it becomes more dependent on intermittent renewable generation sources, catering to the requirements of remote communities, and satisfying the private1 requirements of residential and commercial customers, energy storage is emerging as a potential solution.

In Australia, six energy storage applications, or submarkets, are examined in this report for their potential for commercial success:they simplified model of the demand for energy storage demonstrates the following:  Supporting Fringe and Remote Electricity Systems  Network Support  Market Participation  Grid Stability  Residential Storage Systems  Business Storage Systems.

As storage becomes more cost-competitive in the future, there is likely to be an emerging and rapidly growing market in large grids like the NEM.Additionally, there is a partially latent market for storage in electricity backup applications for businesses that are currently served by other solutions. The commercial market in Australia will have grown to approximately 3,000 MW, or a significant portion of the current generation fleet.

AUSTRALIA ENERGY STORAGE MARKETSIZE AND FORECAST

TheAustralia Energy Storage Marketaccounted for $XX Billion in 2023 and is anticipated to reach $XX Billion by 2030, registering a CAGR of XX% from 2024 to 2030.

AUSTRALIA ENERGY STORAGE MARKET DYNAMICS

Green Gravity, a renewable energy startup from Australia, has signed a memorandum of understanding with global professional services firm GHD to develop new applications for the startup's storage solution, which moves heavy weights vertically in legacy mine shafts to capture and release the gravitational potential energy, providing long-term storage to the grid.

The technology aims to generate clean, dispatchable energy by lowering weights down old mine shafts. Green Gravity plans to accelerate the commercialization of its gravitational energy storage technology.

In a far-reaching organisation, Australian-based Green Gravity and GHD will work together on specialised designing, strategy, administrative issues and power framework network rehearses.The next significant step in the commercialization of the company's "home-grown" gravitational energy storage technology was the partnership.

Solving the power pricing challenge requires collaboration across sectors, innovation, and determination. Recently escalating power prices declared in the federal budget demonstrate how important it is for innovative Australian companies to commercialise new technology quickly.

AUSTRALIA ENERGY STORAGE MARKET TECHNOLOGICAL TRENDS

• Decreasing Costs of Lithium-Ion Batteries: The cost of lithium-ion batteries, which are widely used in energy storage systems, has been decreasing significantly1. This trend is expected to continue, making energy storage systems more affordable and accessible.
• Increasing Use of Renewable Energy: Australia has been increasing its use of renewable energy, which often requires energy storage systems for when the energy isn’t being produced (such as when the sun isn’t shining for solar power)1.
• Development of Advanced Batteries: New types of batteries are being developed that could offer advantages over current lithium-ion batteries1. These advanced batteries could potentially store more energy, charge faster, or be safer or more environmentally friendly1.
• Commercialization of Compressed Air Energy Storage (CAES) Technology: CAES is a type of energy storage that involves storing energy as compressed air2. This technology is being increasingly commercialized, providing another option for energy storage2.
• Government Schemes and Subsidies: A number of government schemes have driven down battery costs and subsidies, accelerating the adoption of the technology by Australian energy producers and users3.
• Large-Scale Energy Storage Projects: There are several large-scale energy storage projects in Australia, such as the New England Solar Farm – Battery Energy Storage System, which is a 1,400,000kW lithium-ion battery energy storage project located in Uralla, New South Wales4.
• Increasing Share of Renewables in Electricity Generation: Since 1995/96, there has been an increasing share of renewables in electricity generation in Australia, with federal commitments to reduce emissions

NEW TECHNOLOGY IN AUSTRALIA ENERGY STORAGE MARKET

Australian companies targeting 4.5 GWh of pumped hydro storage. A new joint venture between Australian renewable energy developers Sunshine Hydro and Energy Estate has been announced. Its goals include the development of "several" large-scale pumped hydro energy storage projects in Victoria, Australia, as well as the integration of new renewable generation capacity and green hydrogen production.

The two businesses also indicated they would be researching alternative long-duration energy storage technologies, such as flow batteries, solar thermal, compressed air, and hydrogen storage, along with their aspirations to build a renewable energy "super-hybrid" project in Queensland.

In Queensland, where the two companies are working together to establish a "super-hybrid" project that will include 1.8 GW of wind generation and 600 MW of pumped hydro with 18 hours of storage, the new collaboration expands on the businesses' already-existing partnership.

As part of the Djandori gung-i project, which is being constructed in central Queensland, there will also be 50 MW of liquefaction, 300 MW of hydrogen electrolysers, and a 50 MW hydrogen fuel cell. The two businesses declared that they have acquired the necessary land for the Queensland project and anticipate making a final investment choice before beginning energy production.

Grid-Scale Battery Energy Storage Operation in Australian Electricity Spot and Contingency Reserve Markets. Renewable energy sources like wind and solar farms are rapidly replacing coal-fired generation in conventional fossil-fuel-based power networks. Such renewable sources are stochastic and intermittent, necessitating the use of alternative dispatchable technologies that can fulfil system dependability and stability requirements.

AUSTRALIA ENERGY STORAGE MARKET SEGMENTATION

By Type

• Mechanical Storage
• Electrochemical Storage
• Thermal Storage
• Chemical & Others

By  Application

• Residential
• Commercial & Industrial (C&I)

By Technology Type

• Grid Storage
• Transportation

AUSTRALIA ENERGY STORAGE MARKET COMPANY PROFILES

• Tesla
• LG Chem
• Sonnen
• Ampcontrol
• Electro Power Systems (EPS)
• Redflow
• Sungrow
• Pacific Green Technologies Group
• Century Yuasa Batteries Pty Ltd
• EVO Power Pty Ltd

THIS REPORT WILL ANSWER FOLLOWING QUESTIONS

1. Cost breakup of Australia Energy Storage and key vendor selection criteria
2. Where is the Energy Storage manufactured? What is the average margin per unit?
3. Market share of Australia Energy Storage market manufacturers and their upcoming products
4. The cost advantage for OEMs who manufacture Australia Energy Storage in-house?
5. Key predictions for the next 5 years in the Australia Energy Storage market?
6. Average B-2-B Energy Storage market price in all segments
7. Latest trends in Energy Storage market, by every market segment
8. The market size (both volume and value) of the Energy Storage market in 2024-2030 and every year in between?
9. Production breakup of the Energy Storage market, by suppliers and their OEM relationship.
10. What are the challenges and barriers to energy storage deployment in Australia, and how are they being addressed?
11. What role does advanced battery technology play in energy storage, and what developments are happening in this field in Australia?
12. What are the prospects for thermal energy storage in Australia, particularly in industries such as district heating and cooling?
13. What is the impact of energy storage on reducing peak energy demand and lowering electricity costs for consumers in Australia?
14. How does energy storage affect the development and operation of microgrids in Australia?
15. How is the mining industry in Australia exploring energy storage solutions to reduce energy costs and emissions?
16. What is the role of pumped hydroelectric storage in Australia's energy grid?
17. How does energy storage contribute to the electrification of remote and Indigenous communities in Australia?
18. What are the long-term visions and goals for energy storage in Australia, and how is the country positioning itself as a global leader in this field?