Fairfield Market Research
Offshore Energy Storage Market

Offshore Energy Storage Market

Global Industry Analysis (2018 - 2021), Growth Trends, and Market Forecast (2022 - 2029)

Published Date: Upcoming | Format:

Industry: Energy & Natural Resources | Author Name: Harshad

The approximately US$200 Mn offshore energy storage market will observe a healthy growth pattern through the upcoming decade. The growing boom around renewable energy will create a favourable environment for the growth of offshore energy storage market.

Use of Batteries Is Increasing Offshore Energy Storage Market

The importance and attractiveness of energy storage is receiving increasing attention by a wide range of stakeholders including utilities, end users, grid system operators and regulators. Energy storage can provide a rich spectrum of benefits to the electric grid, to electricity end users and to society as a whole. Offshore energy storage is touted as the future, warranting the high rise of offshore energy storage market. The amount of electric power generated on board ships, and other offshore installations is increasing significantly and the trend is set to continue. Energy storage ensures a higher efficiency and reliability of the electrical system of offshore installations. Especially for installations with a variable energy consumption profile energy storage will be of great added value.

In terms of technology, batteries are categorised according to the foundational technology upon which they operate. Two electrodes, and an electrolyte make up the core components of a storm. An oxidation reaction occurs at the cathode of a battery, followed by a reduction reaction at the anode, which completes the circuit and preserves charge neutrality. When different materials are utilised, the chemical reaction occurring at the electrode alters, resulting in several battery types. Based on chemistry, some typical battery types include lithium-ion, lead acid, nickel-based, and flow batteries.

Offshore Energy Storage Market Swells as Clean Energy Firms up Worldwide

A crucial piece of technology in the shift to a sustainable energy system is battery energy storage. Methods that store energy in batteries control voltage and frequency, lower peak demand costs, include renewable energy sources, and provide backup power. Energy storage systems depend heavily on batteries, which account for about 60% of the system's overall cost. However, it is anticipated that the overall installed storage capacity would not include any batteries. To promote adoption across the commercial and industrial sectors, the United Kingdom government said exemptions would be provided for energy storage, solar PV, and other clean energy technologies. The offshore energy storage market is anticipated to swell over the forecast period due to the increasing deployment of battery energy storage systems (BESS), and accelerating technical breakthroughs.

For instance, a joint venture between the global renewable energy company TagEnergy, and the UK-based Harmony Energy announced in November 2021 that it would jointly create two grid-scale battery energy storage projects in Scotland, and England. Both initiatives will make use of Tesla's multi-megawatt megapack BESS technology. Jamesfield Farm, located near Scotland, will have a generation capacity of 98MWh, whereas Chapel Farm, situated near southern England, will have a generation capacity of 99MWh. The first quarter of 2022 is when construction is scheduled to start, and it should be finished by 2023. In March 2021, the German Energy Storage Association said that at the end of 2020, 300,000 battery storage devices were installed across German households. In 2019 and 2020, the typical installation capacity was roughly 8 kWh. More than 70% of German homes have battery energy storage systems installed, and by the end of 2020, the country's installed residential storage capacity had increased to 2.3 GWh. This is likely to hold influence on the performance of offshore energy storage market.

Improved Electric Dependability in Oil and Gas to Drive Offshore Energy Storage Market

Oil and gas is expected to be the fastest-growing segment for the end user of the offshore energy storage market over the forecast period. Oil and gas producers use energy storage systems to improve the electric dependability of their activities in seaward regions and to provide backup power during blackouts. In addition, offshore energy storage provides unambiguous and dispatchable electricity, which allows for a stable electrical structure. However, the significant capital expenditure needed for the offshore energy storage solution is anticipated to restrain the market for offshore energy storage worldwide.

Europe’s Offshore Energy Storage Market Sees Robust Expansion as the Boom Around Renewables Grows Denser

One of the biggest markets for energy storage in both Europe and the world is Germany. Due to the nation's ambitious energy transition plans and goal of lowering greenhouse gas emissions by at least 80% (relative to 1990 levels) up until 2050, offshore energy storage market has seen a considerable uptick. In addition, the country intends to phase out nuclear power plants by 2023, which is anticipated to spur the growth of renewable energy sources to make up for the lost capacity for electricity production. In line with the German government's objective of raising the share of renewables to at least 40% in electricity generation by 2050, renewable energy sources will produce about 41% of the nation's total electricity in 2020. Additionally, it is anticipated that the installed capacity of heads like solar, onshore, and offshore wind will grow dramatically. The Germany Energy Storage Association estimated the capacity of residential energy storage systems to be 831 MW by the end of 2020. A battery storage system was built with almost 70% of residential solar PV systems. This system's average capacity was 8.5kWh, somewhat higher than the 8kWh average in 2019.

Global Offshore Energy Storage Market: Competitive Landscape

Meyer Burger Technology AG, a manufacturer of solar modules with headquarters in Switzerland, revealed a building-integrated PV (BIPV) concept, including solar roof tiles, in October 2021. The patent for the new invention was sold to Meyer Burger by the German technical firm paXos Consulting & Engineering GmbH & Co. The roof tile is smaller and lighter than typical tiles, measuring 44 cm x 33 cm x 3 cm and weighing 2.5 kg. The business also disclosed that the manufacture of the tiles is anticipated to start in the second half of 2022. On the other hand, The manufacturing plant for the business's new module series NeMo 3.0 120 M received a EUR 21 million investment from the German company Heckert Solar in September 2021. Moreover, 3D-Micromax, Teamtechnik, and Ecoprogetti provide the production machinery.

A few of the players in offshore energy storage market include Duke Energy (US), ABB (Switzerland), Deepwater Wind (US), E.ON (Germany), Johnson Controls (US), SolarEdge (Israel), Siemens (Germany), General Electric (US), LG Chem (South Korea), and Tesla (US).

Global Offshore Energy Storage Market is segmented as Below:

By Sources

  • Lithium Ion
  • Lead Acid
  • Sodium Chemistry
  • Flow Vanadium
  • Flow Zinc
  • Vessel

By End User

  • Offshore Wind
  • Oil & Gas

By Region

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • UK
    • France
    • Germany
    • Russia
    • Rest of Europe
  • Asia Pacific
    • Japan
    • South Korea
    • India
    • China
    • Rest of Asia Pacific
  • LAMEA
    • Latin America
    • Middle East
    • Africa

Key Elements Included In The Study: Global Offshore Energy Storage Market

  • Offshore Energy Storage Market by Product/Technology/Grade, Application/End-user, and Region
  • Executive Summary (Opportunity Analysis and Key Trends)
  • Historical Market Size and Estimates, Value and Volume, 2018 - 2021
  • Volume Consumption at Regional and Country Level, 2022 - 2029
  • Market Dynamics and Economic Overview
  • Market Size in Value and Volume, Growth Rates, and Forecast Figures, 2022 - 2029
  • Competitive Intelligence with Financials, Key Developments, and Portfolio of Leading Companies 
  • Regional and Product/Grade/Application/End-user Price Trends Analysis
  • Value Chain and Five Force’s Analysis
  • Regional/Sub-region/Country Market Size and Trend Analysis
  • Company Market Share Analysis and Key Player Profiles

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