The popularity of battery energy storage systems in grid stabilization, frequency and voltage regulation, and load shifting has also lent momentum to the market, while the need to store renewable energy for use during peak demand hours has pushed power utilities to use energy storage systems, sustaining market revenues.
In the report, Asia-Pacific Energy Storage Systems Market, Frost & Sullivan
says that the market earned revenues of more than US$854.9 million in 2012 and estimates this to reach US$1,615.4 million in 2017.
"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," said Frost & Sullivan energy and environmental research analyst Avanthika Satheesh P. "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."
However, storage systems' high cost-per-kilowatt of advanced battery storage systems, and end-users' lack of awareness on the advantages of emerging flywheel and super capacitor technologies have slowed down market growth in the region. Fire accidents with li-ion and sodium sulphur batteries have also curbed investments from potential industrial customers to a certain degree.
To win back customer confidence, original equipment manufacturers are building solutions with improved safety and operability features.