Report Overview

Rising energy demand and peak load management and the government’s supportive policies are expected to boost the growth of Australia Energy Storage Systems (ESS) Market during the forecast period between 2024 and 2030.

Australia Energy Storage Systems (ESS) Market - Industry Trends & Forecast Report, 2030

Australia Energy Storage Systems (ESS) Market size was estimated to be worth USD 7.83 billion in 2023. During the forecast period between 2024 and 2030, the Australia Energy Storage Systems (ESS) Market size is projected to grow at a CAGR of 5.23%, reaching a value of USD 14.11 billion by 2030. Major growth factors for the Australia Energy Storage Systems (ESS) Market include favorable government initiatives to boost the renewable energy sector and a decrease in the price of batteries. Additionally, the development of new battery technologies and advancements in the sector is anticipated to drive the Australia Energy Storage Systems (ESS) Market during the period in analysis.

Australia Energy Storage Systems (ESS) – Overview

An energy storage system (ESS) is a system or collection of devices used to store energy and supply it for later consumption. When solar energy adoption rises, ESS can be used to: (i) integrate higher levels of solar PV and manage variable output; (ii) shift peak load and arbitrage electricity prices; and (iii) offer ancillary services to the market for backup reserves and frequency management. While ESS batteries are utilized in power plants and communication base stations, they do not directly require energy density because the majority of ESS battery devices do not need to move.

Australia Energy Storage Systems (ESS) Market

Growth Drivers

Rising Public-Private Investments

The Australian government agencies and private companies are significantly investing in boosting the energy storage system infrastructure across the country, which is expected to drive market growth during the forecast period. For instance, Gaw Capital, a Hong Kong-based private equity firm, and BW Group, a Singapore-based maritime and energy company, announced their joint venture to invest in battery energy storage system projects in Australia. In another instance, Sungrow, an inverter and energy storage system solution provider based in China, announced its partnership with the Clean Energy Transfer Fund to supply innovative energy storage solutions to Australia.

Challenges

High Initial Investment Involved in Energy Storage Systems

The high cost involved in the procurement and installation of energy storage systems acts as a major restraining factor for the Australian market. According to Bloomberg New Energy Finance, the average price of a volume-weighted lithium-ion battery pack is USD 152/kWh while the cost of an energy storage system for a four-hour duration system in 2023 is USD 300/kWh. Along with the cost of batteries and systems, the rising price of raw materials and components further hinders the adoption of energy storage systems (ESS) in the Australian market.

Australia Energy Storage Systems (ESS) Market

Segmental Coverage

Australia Energy Storage Systems (ESS) Market – By Technology

Based on technology, the Australia Energy Storage Systems (ESS) Market is segmented into electrochemical, thermal storage, mechanical energy storage, and others. The electro chemical segment is further classified into lithium-ion battery, lead acid battery, sodium sulphur (NAS) battery, flow battery, and others. The mechanical energy storage segment is further segmented into pumped hydro energy storage, flywheel energy storage, and compressed air & liquid air energy storage. The electrochemical segment holds the largest share in the Australia energy storage systems (ESS) market. In addition to controlling voltage and frequency and lowering peak demand costs, battery energy storage systems also incorporate renewable energy sources and offer a backup power source.

Australia Energy Storage Systems (ESS) Market – By Application

Based on application, the Australia Energy Storage Systems (ESS) Market is split into transportation and grid storage segments. The grid storage segment accounts for a higher market share. The market's growth is mainly attributed to the infrastructural development in Australia the construction of power plants, dams, mills, refineries, and power grids, and the establishment of heavy industries. This is attributed to the rapid expansion of heavy industries & projects such as dams, power plants, power grids, refineries, and mills. In addition, the rise in the number of hydropower projects across the globe is expected to act as the key driving force of the stationary energy storage systems market during the forecast period.

Australia Energy Storage Systems (ESS) Market – By End User

Based on end user, the Australia Energy Storage Systems (ESS) Market is segmented into residential, non-residential, utilities, and automotive. The residential segment dominates the Australia Energy Storage Systems (ESS) Market. The increasing adoption of solar energy in homes as the primary power system and the ability of ESS to ensure continuity of power in case of temporary disruptions in the power supply contribute to the growth of the residential segment. The utilities segment is projected to register a high growth rate during the forecast period with the growing electricity demand.

Competitive Landscape

Major players operating in the Australia Energy Storage Systems (ESS) Market include Redflow Limited, Ecoult, Ampcontrol Pty Ltd, Evergen Pty Ltd, Alpha-ESS, Pylon Technologies Co., Ltd, SolarWatt Australia, 360 Energy Pty Ltd, Ecosmart Solar, and Senec Australia.

These companies employ various strategies to further enhance their market share, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In August 2023 – Wärtsilä, a technology group based in Finland, and AGL Energy Limited, an Australia-based integrated energy company, announced the completion of the Torrens Island Grid Scale battery energy storage system (ESS) at Torrens Island in South Australia.

Scope of the Report

By Technology

• Electro Chemical

1. Lithium-Ion Battery

2. Lead Acid Battery

3. Sodium Sulphur (NAS) Battery

4. Flow Battery

5. Others

• Thermal Storage

• Mechanical Energy Storage

1. Pumped Hydro Energy Storage

2. Flywheel Energy Storage

3. Compressed Air & Liquid Air Energy Storage

• Others

By Application

• Transportation

• Grid Storage

By End User

• Residential

• Non-residential

• Utilities

• Automotive