2017 was a year of significant progress in energy storage, both domestically and internationally. It marked an unusually busy period for the development of various energy storage technologies. Among them, electrochemical energy storage stood out as the fastest-growing sector. The advancement of lithium-ion batteries, sodium-sulfur batteries, lead-acid batteries, and flow batteries accelerated rapidly, entering a high-growth phase.
According to incomplete data from the CNESA (Zhongguancun Energy Storage Industry Technology Alliance) project library, the cumulative operating capacity of global electrochemical energy storage between 2000 and 2017 reached 2.6 GW, with a total energy capacity of 4.1 GWh. Annual growth rates were 30% and 52%, respectively. In 2017 alone, new installations totaled 0.6 GW and 1.4 GWh, with over 130 projects launched throughout the year.
Starting from 2016, electrochemical energy storage entered a phase of rapid application, with energy storage projects becoming more numerous, larger in scale, and more prominent. According to CNESA statistics, the global planning and construction scale during 2016–2017 reached 4.7 GW, with many more projects expected to be completed in the following years. To meet the growing demand for large-scale energy storage in power systems, the capacity of electrochemical energy storage projects has also increased. Over 40 projects above 10 MW were initiated during this period, and more countries are actively participating in energy storage applications.
By 2015, electrochemical energy storage systems had been deployed in 10 countries, including the U.S., China, and Germany. By 2017, nearly 30 countries across North America, South America, Africa, Europe, Oceania, and Asia had operational energy storage projects, showcasing the global trend of energy storage adoption.
China's development of electrochemical energy storage has been particularly impressive. From 2000 to 2017, the country's cumulative operating capacity reached nearly 360 MW, accounting for 14% of the global total. With an annual growth rate of almost 40%, it exceeded the global average. Between 2016 and 2017, China’s planned and under-construction projects totaled nearly 1.6 GW, making up 34% of the global total. China is expected to take a leading role in the coming years.
2017 was also a year of frequent policy support for energy storage. As one of the early adopters, the U.S. expanded its energy storage policies beyond California to include states like Massachusetts, Oregon, and Hawaii. Other countries such as the UK, Austria, the Czech Republic, Italy, Australia, India, and China also introduced energy storage development policies in 2017. These policies provided strong support for the global energy storage industry, both in terms of depth and regional coverage.
In October 2017, China released its first national-level large-scale energy storage technology and application development policy, "Guidelines on Promoting Energy Storage Technology and Industrial Development." The guidelines emphasized R&D and demonstration of energy storage technologies, improved renewable energy utilization, enhanced grid flexibility, and promoted intelligent and diversified applications of energy storage. Cities like Dalian, Yichun, Beijing, and Ningbo have introduced local policies, and more provinces are expected to follow suit, focusing on market access mechanisms and pricing compensation.
In the U.S., after California cleared its 1.325 GW power purchase plan, states like Oregon, Massachusetts, and New York announced their own energy storage targets. New Mexico included energy storage in public utility planning, while Maryland promoted the development of renewable and energy storage projects across the state. The UK and Australia also showed strong policy support, with the UK integrating energy storage into its “British Intelligent Flexible Energy System†and Australia offering subsidies for user-side energy storage systems.
2017 was also a year of increasing focus on energy storage systems that align with market demands. While industrial development and policy support have opened the door to the market, the current stage remains largely driven by policy. Achieving profitability and commercialization still faces uncertainties and challenges. Energy storage has become a highly anticipated "blue ocean" industry, with global investment exceeding $4.33 billion in 2016. However, as the industry transitions from demonstration to market application, the era of policy-driven growth will gradually fade, and energy storage will face real market competition.
In the UK, 2.1 GW and 4.8 GW of battery storage projects qualified for auctions in the T-1 and T-4 capacity markets. However, due to the short duration of battery storage, the British BEIS reduced the derating factor for half-hour battery storage in 2017, placing new demands on short-term flexible systems. This move temporarily limited the use of short-term storage but encouraged the development of long-term solutions.
In the U.S., the PJM market, which includes 265 MW of energy storage for frequency regulation, recently updated its rules to allow equal competition between energy storage and other resources. This shift highlights the evolving role of energy storage in the electricity market, requiring operators to find their place within new regulations.
Standardization of energy storage products is also crucial. In Germany, despite growing demand for residential and commercial energy storage systems, large-scale deployment is hindered by a lack of standardized products, interfaces, and business models. Fire safety, health, and environmental concerns also require better solutions. Without these standards, widespread adoption remains challenging.
Looking ahead, the future of energy storage will depend on continuous improvements in market applicability, technical performance, and system integration. As energy storage participates in electricity markets, its positioning, value, and profitability will be tested. The development of clear standards and specifications will be essential to meet user needs and ensure safety. While these challenges may slow down growth in the short term, they are part of the necessary process for the industry to mature and thrive in the market. Only through real-world testing can energy storage prove its competitiveness and sustainability.
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