According to the latest survey by research firm , Europe has now become the world's largest residential energy storage market. In the next five years, the European residential energy storage market will grow faster than Germany, which is the leader in the European residential energy storage market to date.

The cumulative residential energy storage capacity deployed in Europe is expected to increase five-fold and reach 6.6 GWh by 2024. By 2024, the annual deployment in the region will more than double, and 500MW / 1.2GWh will be deployed each year.

Other European countries outside Germany have started to deploy residential energy storage systems extensively. This has created good prospects for deployment, especially given the declining market structure, current electricity prices, and on-grid electricity prices.

Although the economics of the energy storage system has been challenging in the past, its market has reached a turning point. The main markets of Germany, Italy, and Spain are moving towards the grid parity of residential solar energy + energy storage. At this time, the electricity cost of the power grid is comparable to that of solar energy + energy storage systems.

European Energy Storage Suppliers by Sector

Wood Mackenzie's research model is measured by net present value (NPV) and internal rate of return (IRR), with Germany and Italy among the best in the European market. Although these two countries have deployed more residential energy storage systems than other European countries, Wood Mackenzie expects this trend to expand in other European countries and will be a sound investment decision.

Although the net present value (NPV) indicator is not important for market growth, the strong growth so far in Germany and Italy proves this, and they have contributed to the large-scale adoption of residential energy storage systems and market growth.

Mergers and acquisitions in the European residential energy storage market are also heating up. Utilities, oil and gas giants, energy storage companies, and home users are exploring M & A deals for residential energy storage. These investment activities are usually further control of equity investments or complete acquisitions.

Energy storage system costs continue to fall

The rapidly decreasing cost of energy storage systems is a major driver of this economic turning point. With the advent of the electrification era, upgrades to infrastructure and policies aimed at addressing high capital expenditure power systems will lead to higher electricity prices.

As the cost of energy storage systems continues to decrease, Wood Mac expects economic conditions and market growth to continue to improve.

However, Britain and France are still far from reaching this economic turning point. Both countries are hampered by the cost of energy storage systems (per kilowatt-hour) and unfavorable or untapped energy storage frameworks. Grid parity will not be achieved until 2024, but deployment is expected to increase anyway.

Spain's development is interesting

Spain is a European residential energy storage market to watch. However, Spain has not yet formulated a specific residential energy storage policy, and the country has previously implemented a destructive solar power policy (trace-to-grid tariff policy and a controversial "sun tax").

However, driven by the European Commission, the Spanish government's thinking has changed, which means that it will soon see the development of the country's residential solar market, paving the way for the development of solar + energy storage projects in Spain, the sunniest region in Europe .

The report shows that the deployment of energy storage systems for residential solar power facilities still has a lot of room for growth. In WoodMac's 2019 German solar + energy storage project case, this proportion is 93%. This makes client advice more challenging.

The report states that Europe needs more innovative business models to absorb upfront costs and enable residential energy storage systems to help European consumers achieve an energy transition.

The rise in electricity prices and consumers' desire for a more environmentally friendly and sustainable environment are enough to promote the growth of residential energy storage system deployment.

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