South America's energy storage solutions suited to support and complement energy systems with increasing amounts of renewable energy sources are attracting investors, utilities, installers, manufacturers, and project developers from all over the world. The South America battery energy storage system market is expected to grow at a CAGR of over 9.5% during the forecast period 2020-2025. Factors such as the increasing levels of renewable energy penetration, increasing demand for grid flexibility, and the declining price of lithium-ion batteries are expected to drive the market during the forecast period. However, the greater variability and uncertainty of renewable energy sources in the region and the high initial investment required for the installation of the battery energy storage system are expected to hinder the growth of the market studied.
- The lithium-ion segment is expected to dominate in the South America battery energy storage system market over the coming years.
- In South America, energy storage systems are set to change the energy industry. The high penetration of renewables that is envisaged in future power systems of South America is expected to significantly increase the need for flexible operational measures and energy storage systems. The market potential for battery storage systems in the region is huge whether for homeowners, in grid systems or as large-scale storage systems in commercial or industrial use, which in turn, likely to provide an opportunity in the market.
- Chile is expected to dominate the South America battery energy storage system market across the region during the forecast period.
Key Market Trends
Lithium-ion Segment to Dominate the Market
- South America is home to some of the largest lithium reserves in the world. The advantage of lithium-ion storage systems is their ability to optimize the use of the power produced by the plant, which lowers marginal costs.
- Lithium-ion battery storage systems are in huge demand in the South America battery energy storage market since lithium-ion batteries are advanced and widely available solutions used for the storage of energy from renewable energy sources in the region.
- In 2018, Enel has announced the installation of the Battery Energy Storage System - BESS Ventanilla, the first high-capacity lithium-ion battery in the country.
- In Chile, the lithium-ion battery project marks Engie’s first entry into energy storage in the country, which has some of the highest levels of solar irradiance in the world around the northern region of the Atacama Desert.
- A surge in lithium-ion battery production has led to an 85% decline in prices that is expected to create new opportunities that were previously out of reach in South America.
Chile is to Dominate in the Market
- Chile's renewable energy installed capacity has reached 11.48 GW in 2019. Much of Chile’s renewable energy potential lies in solar PV and wind power, both of which are known for their intermittency. The situation inevitably calls for more efficient battery energy storage systems.
- Chile has become a regional leader in lithium-ion battery energy storage systems, in an effort to manage its renewable energy reserves more efficiently and for the reason, the country is home to a huge amount of lithium reserves, most of which are found in the Atacama Desert in the northern part of the country.
- The first BESS projects implemented in Chile using domestically produced lithium was developed by AES Gener. As of 2019, AES Gener has installed three storage systems in the region of Antofagasta with a capacity of 52 MW. Two are sited next to the Cochrane and Angamos power plants (20 MW each), while the third is at the Andes substation (12 MW).
- Developments in the photovoltaic market, alongside implementation of more efficient battery energy storage systems, are positioning Chile as a regional leader in this field.
The South America battery energy storage system market is moderately fragmented. Some of the major key players in the market include Enel S.p.A., AES Gener S.A., BYD Co Ltd, Engie SA, and Acumuladores Moura S. A.
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
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Table of Contents
1.2 Market Definition
1.3 Study Assumptions
4.2 Market Size and Demand Forecast in USD biliion, till 2025
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.6 Supply Chain Analysis
4.7 Porter's Five Force Analysis
4.7.1 Bargaining Power of Suppliers
4.7.2 Bargaining Power of Consumers
4.7.3 Threat of New Entrants
4.7.4 Threat of Substitute Products and Services
4.7.5 Intensity of Competitive Rivalry
5.1.1 Li-Ion Battery
5.1.2 Lead Acid Battery
5.2.2 Commercial and Industrial
5.3.4 Rest of South America
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Enel S.p.A.
6.3.2 AES Gener S.A.
6.3.3 BYD Co Ltd
6.3.4 Engie SA
6.3.5 Acumuladores Moura S. A.
6.3.6 LG Chem Brazil, Ltd.
6.3.8 Saft Groupe SA
A selection of companies mentioned in this report includes:
- Enel S.p.A.
- AES Gener S.A.
- BYD Co Ltd
- Engie SA
- Acumuladores Moura S. A.
- LG Chem Brazil, Ltd.
- Saft Groupe SA