• Real Estate Trends: Standalone BESS Market

    February, 2024

Standalone Battery Energy Storage Systems (BESS), often referred to as ‘Standalone BESS’, represent a transformative innovation in the field of energy storage. These systems operate independently, devoid of any specific tethering to conventional power generation sources, such as solar panels or wind turbines. The fundamental purpose of these cutting-edge systems lies in their adeptness at storing electricity during periods of low demand and subsequently releasing it when required, effectively mitigating supply disruptions during peak demand.

In recent years, the global energy landscape has undergone a rapid evolution, marked by a profound shift towards cleaner and more sustainable energy solutions. This transition has rendered the Standalone BESS market a burgeoning sector, poised for substantial growth. In particular, the Standalone BESS sector in Spain has emerged as an enticing frontier, poised to play a pivotal role in facilitating the integration of renewable energy sources into the Spanish electricity market. However, it is imperative to acknowledge that this market remains in its nascent stages, replete with certain uncertainties and uncharted territories.

According to data emanating from diverse industry analysts, the global battery storage market is on the cusp of a substantial expansion. Projections indicate that it is anticipated to amass approximately 2,600 Gigawatt-hours (GWh) of installed capacity by 2030. Assuming an average battery life of 3 hours, this estimate translates into a staggering 867 Gigawatts (GW) of installed BESS capacity worldwide. This monumental growth will predominantly manifest in the form of large-scale grid-connected installations, accounting for a significant majority at 82%, followed by commercial and industrial installations constituting 13%. Notably, the United States and China are poised to emerge as the global forerunners in the Standalone BESS sector, accounting for a remarkable 45% and 31% of global installations, respectively.

In Spain, the government’s unwavering commitment to bolstering the renewable energy sector has materialized in the form of substantial financial incentives. A notable example is the allocation of €280 million in subsidies dedicated to fostering independent energy storage, thermal energy storage, and reversible pumped hydro projects, scheduled to materialize by 2026. This substantial commitment has led to a revision of Spain’s storage forecasts for the year 2030, which, prior to the revision, were set at approximately 2.5 GW of additional storage capacity. However, in a landmark update in June this year, the government recalibrated its target to a remarkable 12 GW, underlining the unwavering commitment to accelerating the adoption of Standalone BESS.

Despite the inherent complexities, uncertainties, and requisite regulatory adjustments associated with the Standalone BESS sector in Spain, this innovative form of energy storage is poised to emerge as a leading alternative within the energy sector. As we navigate the evolving landscape of energy solutions, Standalone BESS is increasingly gaining recognition as one of the primary investment avenues, both on a national and international scale. Its transformative potential lies in its ability to bridge the gap between intermittent renewable energy sources and uninterrupted power supply, ushering in a new era of sustainable and reliable energy delivery.