Growth slowed in European energy storage in 2019 as a result of regulatory uncertainty and market saturation, according to trade group European Association for Storage of Energy (EASE).
EASE said in the the fourth edition of its European Market Monitor on Energy Storage report that the market grew by 1 gigawatt-hour last year, representing a “significant slow-down compared to 2018”.
Front-of-meter installations slowed dramatically, while residential behind-the-meter capacity was the fastest growing market segment, it said.
The report said that 2018 saw a particularly rapid increase in front-of-the-meter projects, partly driven by Enhanced Frequency Response tenders.
This resulted in higher competition, lower prices and revenue streams partly explaining the slowdown in rate of growth in 2019, EASE said.
EASE secretary general Patrick Clerens 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.
EASE said CEP will create a stronger regulatory framework for energy storage across Europe.
The regulatory changes occur while consumers in both the residential and commercial and industrial segments show rising interest in storage as technologies costs fall and feed-in-tariffs are phased out, the report noted.
Delta-EE energy storage and flexibility analyst Robin Adey-Johnson said: “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.”