Is the Bess market infancy?

The development of the BESS market is still in its relative infancy, compared to more established clean energy markets. As the industry matures, there will undoubtably be challenges along the way.

Which region has the largest Bess market?

Asia Pacific to Retain Primacy The BESS markets in both North America, and Europe account for a significant share, with the United States being the biggest market in North America, and Germany being the largest in Europe. However, the Asia Pacific region is expected to register the highest projected CAGR over the forecast period.

What is the Bess market segment?

Utility-owned systems represent the largest market segment in the BESS industry, with utilities investing heavily to enhance grid reliability and manage peak loads. Despite the high initial costs, the declining prices of lithium-ion batteries and ongoing technological advancements are expected to propel market growth.

What is McKinsey's forecast for Bess?

McKinsey anticipates that the utility-scale BESS segment will experience the most rapid growth, estimated at 29% annually through the end of this decade. This segment is set to dominate the market by 2030, potentially accounting for up to 90% of the total market share, with annual installations projected to be between 450 and 620 GWh.

Why is Bess a problem?

BESS sites are running at below their projected capabilities, which has led to revenues being less than expected a year ago.4 Incorporating BESS into grid networks requires upgrading and digitalization of the grid, adding to the complexity and challenges of the electricity market.