Augwind Energy Tech Storage Ltd

Investor Presentation • Jan 4, 2021

Outlook for the Global Energy Storage Industry, 2020 The United States and China Continue to be the Key Energy Storage Markets, Supported by Strong Regulations, Legislative Policies, and Incentives Licensed to Tiran RothmanFrost & Sullivan Unauthorized Distribution Prohibited

Global Energy & Environment Research Team at Frost & Sullivan

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Contents

Section	Slide Number
Executive Summary		7
	Energy Storage Market Predictions for 2020	8
	Global Energy Storage Technologies Forecast for 2020	9
	Global Alternative Energy Storage Technologies Forecast for 2020	10
	Global Battery Energy Storage Technologies Forecast for 2020	man 11
Research Scope and Segmentation		Distribution Prohibited Roth & Sullivan 12
	Research Scope	Licensed to Tiran 13
	Market Definition and Segmentation	Frost 14
2020 Industry Outlook—Alternative Energy Storage Technologies: Market Overview		Unauthorized 15
	Key Alternative ESS Market Predictions for 2020	16
Alternative Energy Storage Technologies—Technology Trends		17
	Alternative Energy Storage Technologies Lifecycle	18
	Key Alternative Storage Technology Trends and Market Watch for 2020	19
	TES Technology	20
	CAES Technology	21
	Flywheel Energy Storage Technology	22

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Contents (continued)

Section		Slide Number
	Supercapacitors	23
	New Technologies—Advanced Rail Energy Storage (ARES)	24
Alternative Energy Storage Technologies—Regional Analysis	25
	Global Alternative Energy Storage Technologies Forecast for 2020	26
	Regional Trends—North America	Distribution Prohibited man 27
	Regional Trends—Europe & Israel	Roth & Sullivan 28
	Regional Trends—APAC	29
Alternative Energy Storage Technologies—Application Analysis		Licensed to Tiran Frost 30
	Alternative Energy Storage Technologies—Applications	Unauthorized 31
	ESS Business Model Developments	32
2020 Industry Outlook—Battery Energy Storage Systems: Market Overview		33
	Key Battery Market Predictions for 2020	34
Battery Energy Storage Systems—Market Analysis		35
	Market Size and Growth	36
	Global Battery Energy Storage Technologies Forecast for 2020	37
	Regional Trends—APAC	38

Contents (continued)

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Roth 44
Distribution Prohibited & Sullivan Licensed to Tiran 45
Frost 46
Unauthorized 47
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Contents (continued)

Slide Number
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Distribution Prohibited Strategic Imperatives for Success and Growth—Critical Success Factors for Growth of 60 man
Roth & Sullivan 61
Licensed to Tiran 62 Frost
Unauthorized 63
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Companies to Watch—New Product/Technology/Service Launches in 2020 67
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Contents (continued)
Section	Slide Number
Appendix	71
Abbreviations and Acronyms Used 	72
Market Engineering Methodology 	74
List of Exhibits 	75

Licensed to Tiran Rothman Frost & Sullivan Unauthorized Distribution Prohibited

Author: Jonathan Robinson

Executive Summary

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Frost & Sullivan

Energy Storage Market Predictions for 2020

Residential energy storage system (ESS) and molten salt thermal storage will record strong growth.

Source Images: Wikipedia. Source: Frost & Sullivan

Global Energy Storage Technologies Forecast for 2020

4.94 GW of storage capacity to be added globally in 2020, as the installed base crosses 20 GW.

Energy Storage Outlook: ESS Installed Capacity by Technology and Region, Global, 2020

RoW = Rest of World

Note: All figures are rounded. The base year is 2019. Source: Frost & Sullivan

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Global Alternative Energy Storage Technologies Forecast for 2020

Installed capacity will reach 8.86 GW in 2020, at an annual growth rate of 10.0%.

commissioning date is not yet finalized.

Thermal energy values are related to grid-connected capacity.

Source: DOE Global Energy Storage Database; Frost & Sullivan

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Global Battery Energy Storage Technologies Forecast for 2020

Installed capacity will reach 11.3GW in 2020, an increase of 4.1GW on 2019.

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Research Scope and Segmentation

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Frost & Sullivan

Research Scope

Base Year	2019
Forecast Period Industry Area	Distribution Prohibited 2020 man Energy Storage Roth & Sullivan • BESS (lead acid, Li-ion, sodium based, nickel based, and flow batteries) Licensed to Tiran • Alternative energy storage technologies (including Thermal Energy Storage, Frost Unauthorized Compressed Air Energy Storage, Supercapacitor and Flywheel Storage) Pumped hydro energy storage, the largest grid storage technology, is not covered in this outlook study because it is a mature technology with limited major developments.
Geographical Scope	Global
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Market Definition and Segmentation

Segment	Sub-segment Type	Definition
Mechanical	CAES	This technology is mature, with growth expected only in its advanced form called advanced-adiabatic compressed air energy storage (AA-CAES). Air is compressed and stored in underground storage cells and released into the turbine during peak hours to meet demand. The requirement for suitable geographic locations for implementing CAES limits the long-term growth of this market.
	Flywheel energy storage	This sub-segment stores energy from wind or solar energy in the form of rotational kinetic man energy in a vacuum cistern and releases the energy when needed.
Electrical	Supercapacitor	Distribution Prohibited Roth & Sullivan These capacitors have high power density. Renewable energy is stored as static electricity in these capacitors.
TES	Hot water storage	Licensed to Tiran Frost This TES uses molten salt energy storage technology. The high temperature in the molten Unauthorized salt is converted to electricity through a conventional thermal power plant.
	Ice storage	Ice storage is a method of TES that freezes water and stores it at low temperatures.
	Chilled water storage	Water is cooled and stored at night when electricity is cheaper and used during the day for air conditioning.
	Molten salt	This method of TES is used to retain heat energy from concentrated solar power (CSP) plants to generate electricity at night or during bad weather.
Electro chemical	BESS	BESS utilizes electrochemical potential energy stored in electrodes and electrolytes and allows for rapid charging and discharging of energy. Types of BESS covered in the study are lead acid, Li-ion, sodium based, nickel based, and flow batteries.

Note: Thermal is the most prominent among alternative technologies and so other technologies are not mentioned Source: Frost & Sullivan

2020 Industry Outlook—Alternative Energy Storage Technologies: Market Overview

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Key Alternative ESS Market Predictions for 2020

Molten salt thermal storage will emerge as a dominant technology in 2020.

Thermal storage to be the most promising alternative storage technology, particularly molten salt and ice thermal

TES is penetrating into industrial applications after successful integration with CSP renewable installations in 2018–19

Sodium Sulphur gains momentum and moves beyond Japan as the world's largest plant (108MW) was installed in Abu Dhabi in 2019

Surge for supercapacitors expected as Tesla's acquisition of Maxwell Technologies boosts interest in the technology

Levels of R&D investment for alternative storage technologies continue to rise as investors look for alternatives to batteries Licensed to Tiran Rothman

Government policies and mandates continue to be a key influencer on growth

Frost & Sullivan

Alternative Energy Storage Technologies— Technology Trends

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Alternative Energy Storage Technologies Lifecycle

Ice thermal storage for heating, ventilation, and air conditioning (HVAC), electric thermal storage and multi-hour flywheel storage applications are the key alternative solutions that should gain momentum in 2020.

Key Alternative Storage Technology Trends and Market Watch for 2020

Thermal energy storage (TES) has come a long way with multiple types of storage and growing installations.

Distribution Prohibited Flywheel storage has not witnessed major project installations in 2019. Yet, it is used along with a man battery energy storage system (BESS) or ultracapacitor or other forms of storage. However, Flywheel Energy Roth & Sullivan large-scale installations are unlikely till 2020. Some major participants including Beacon Power, Storage Licensed to Tiran Siemens, and EnSync Energy are all involved in backup power based systems, and an exclusive energy storage provider is not seen in this market. This trend is likely to continue in 2020 as well. Frost Unauthorized The biggest impact supercapacitors are expected to have is in high-power applications with short bursts of energy such as the automotive electrification and backup power applications. Augmented Optics Ltd has come up with groundbreaking research on supercapacitor polymer material which increases the power density by 1000-10,000 times than the existing ultracapacitor. This breakthrough Supercapacitor and consumer electronics. Superconducting Magnetic Energy Storage (SMES) is another area keenly researched in Spain and Italy for feasibility in grid storage applications. However, this technology is in research and is unlikely to gain momentum till 2020. Canadian start-up Hydrostor has introduced the advanced compressed air energy storage (A-CAES) known as Terra which can be installed at any location in the vicinity of a water body, eliminating the CAES requirement of a suitable geologic site. The off-peak electricity is compressed and stored in specially	TES	TES was once restricted to molten salt storage, but now has grown significantly and is gaining interest globally. Other technologies including cryogenic storage, solar energy storage, hot silicon, and pumped-heat storage will attract further interest and investment in 2020. The technology that was once limited to Europe is now spread across the United States, China, Middle East and Africa. The launch of a containerized, module-based TES by Climate Change Technologies based in Australia is a big breakthrough that could enable TES to operate in the industrial and residential storage too. These activities prove TES to be the most prominent ESS among all other alternative storage solutions.
		technology, when commercialized, is expected to be a feasible solution for transportation, grid storage,
designed tanks. When electricity is required, the extra pressure is released to turn the turbine. The company claims a record lowest installed cost/kWh available for bulk energy storage.		Source: Hydrostor; Frost & Sullivan

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TES Technology

Low pricing of solar CSP with TES, ranging at under 5 cents/kWh in Chile, followed by the influx of projects in China, Middle East, and Africa is making TES attractive.

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CAES Technology

CAES technology will be driven by innovative technological advancements such as underwater CAES. As it takes years to complete a project, not many installations will come up in 2 years.

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Flywheel Energy Storage Technology

Innovations in flywheel technologies to increase the storage capacity will decide the adoption of Flywheel storage.

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Supercapacitors

Supercapacitors are used for storing energy for very short, intermittent durations. Hence, it is usually combined with another technology in ESS application and used for regenerative braking in transportation applications.

Market Discussion

• Tesla's acquisition of Maxwell Technologies indicates the importance of supercapacitors. However, this technology is likely to gain momentum in transportation applications, typically in electric vehicles (EVs) for regenerative braking. Its application in transportation services has been tested in South Korean and Chinese metro rail projects with promising results.
• The United States has traditionally been the market leader in terms of supercapacitor production and application. However, the APAC region including China, South Korea, and Japan is a promising market given the significant adoption of electric and hybrid vehicles. Licensed to Tiran Rothman Frost & Sullivan Unauthorized Distribution Prohibited

Energy Storage Outlook: Supercapacitors Ongoing Projects by Region, Global, 2020

Key Trends

• Skeleton Technologies in Germany has developed a supercapacitor that can be used in trucks, buses, and trains and operates the biggest supercapacitor factory in Europe. It has a patented synthetic process for the curved graphene material which gives it an edge to achieve the highest commercially available energy density. This enables its supercapacitor to perform efficiently even at temperatures of -40◦C.
• Supercapacitors are being explored for grid storage and data center applications by tapping their quick recharge and higher power density potential to act as a back-up for critical loads.

Source: DOE Global Energy Storage Database; Frost & Sullivan

New Technologies—Advanced Rail Energy Storage (ARES)

Energy stored is based on the gravitational potential principle.

• ARES is a grid-scale energy storage methodology developed by ARES North America.
• The pilot test bed was initiated in 2016, and the mode of storage is gravitational potential energy. In 2017, ARES got approval for a 50MW project in Nevada to stabilize the energy grid in the region. Excessive energy in the grid is stored by ARES shuttle trains. An automated steel rail network connects storage yards at different locations.
• Using grid power, motors drive the trains uphill against the force of gravity, stored as gravitational potential energy. During peak hours in the grid, these trains are driven down the hill to the lower storage yard, and the motors now operate as generators, reversing the process.
• Project scalability: 10 MW/20 MWh to 2 to 3 GW/16/24 GWh
• Key applications of this technique: Ancillary services and renewables integration
• US patents: 8593012 and 8674541
• Storage method: Gravitational potential energy
• Promised efficiency: 78%
• Advantages:
  • o Lower CAPEX: About 60% of that of pumped hydro storage
  • o Low Operating Expenditure (OPEX): Lowest of the existing storage technologies

Source: Frost & Sullivan

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Alternative Energy Storage Technologies—Regional Analysis

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Global Alternative Energy Storage Technologies Forecast for 2020

Installed capacity will reach 8.86 GW in 2020, at an annual growth rate of 10.0%.

commissioning date is not yet finalized.

Thermal energy values are related to grid-connected capacity. Source: DOE Global Energy Storage Database; Frost & Sullivan

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Regional Trends—North America

Technological innovations in alternative ESS such as Advanced CES, multi-hour flywheels, and BTM thermal storage systems are driving the market in North America.

Energy Storage Outlook: Capacity Addition,

Country	ESS Type	Capacity Additions Announced in 2019
United States	Thermal Storage Advanced CAES	210.6 MW 1000 MW*

*This project was announced in 2019 and will be operational by 2025.

Technology

North America, 2019 Advanced CAES technologies have made significant inroads into the United States, with the project in Utah that Mitsubishi Hitachi Power Systems (MHPS) is developing with its partners to store 1000 MW of renewable energy. This project is likely to be operational by 2025. Unauthorized Distribution Prohibited

TES for peak capacity, demand response, and HVAC replacement for BTM installations is garnering attention in the United States. The concept of using old coal power plants for thermal storage is gaining attention in the United States. Licensed to Tiran RothmanFrost & Sullivan

Application

• Thermal energy is used primarily for HVAC power replacement and demand response during peak hours. For large industrial systems, this technology has been well received in the United States, with venture capital (VC) partnered companies keen on building scalable and cost-effective TES that enables to meet the 100% renewable energy target by 2045 set by California.
• The flywheel system is meant for short-term storage, primarily for frequency response applications in addition to existing electro-chemical or alternative storage solutions. This system, along with thermal energy storage, is employed in service use cases such as Electric Energy Time Shift, Electric Supply Capacity, and Transmission Congestion Relief.
• • Existing flywheel systems have low cycle life, and current projects are used for frequency regulation and ramp control. Multihour flywheel systems with longer cycle life have been tested in O'ahu, which was able to significantly improve the application of flywheel systems to peak load replacement and energy time shifting.

Source: Frost & Sullivan

Regional Trends—Europe & Israel

Europe has a strong R&D focus on alternative materials for energy storage. BTM thermal storage systems are being tested in several countries in the region. The success of these projects will result in widespread adoption in the residential sector.

Energy Storage Outlook: Capacity Addition, Europe & Israel, 2019

Country		ESS Type	Capacity Additions Announced in 2019
Germany		TES (ETES)	31 MW, 50MW* (2020)
Israel TES 121MW
* - Project will be completed by 2020

Technology

Siemens Gamesa Renewable Energy (SGRE) commissioned the first electric thermal energy storage that could store 130 MWh of power for seven days. SGRE has made meticulous efforts towards R&D on storing thermal energy in rock fills at Hamburg, in a program named the "Future Energy System" project. The surplus power generated from the wind plant is stored in rocks as hot air which then releases the heat when called upon to turn a generator producing electricity. This plant could generate a massive 31 MW energy to be pumped into the German grid. This could solve renewable energy intermittency issues as well as help in cases where renewable energy based power generation exceeds grid capacities and storage makes absolute sense to act as a buffer. Licensed to Tiran Rothman Frost & Sullivan Unauthorized Distribution Prohibited

Market Trends

• Key applications of alternative ESS include renewable energy firming and peak load shifting. R&D in molten silicon, smart thermal storage, and advanced supercapacitors could result in more price-competitive ESS, with a wider application portfolio introduced in the short term.
• Germany has been pioneering the deployment of Electric Thermal Energy Storage (ETES) with 100 MW of installed capacity from 2012, which includes the 31 MW project commissioned in 2019 and another 50 MW project under construction, which is scheduled to be commissioned by 2020.
• • Israel is another important country harnessing TES to achieve a target of 17% of electricity generated by renewable energy by 2030. The Negev Energy Project is a 'sea of mirrors' project, Israel's largest renewable energy project that is capable of generating 310 MW of power.

Source: Solar Power And Chemical Energy Systems; Frost & Sullivan

Regional Trends—APAC

Disruption in competition will likely be intense with new partnerships and entrants into the ESS market.

• The APAC region is expected to make significant progress particularly in the CSP + Thermal storage technology with a plethora of projects under construction in 2019. Supportive energy storage policies in China will drive the market growth, which is progressing towards a capacity of 1369 MW of operational capacity by 2020. Australia and China are touted to be the main markets for deploying CSP plants with molten salt-based storage solutions.
• Climate Change Technologies from South Australia has launched the first modular TES that is scalable depending on the capacity. It is suitable for industrial and commercial applications. Australia is all set to gain momentum in the TES space with multiple companies coming up with different types of TES systems.
• • SuunPower, a major EPC and CSP project developer, has agreed to develop CSP projects with a cumulative capacity of 1GW. Interestingly, the storage technology will be Norway's EnergyNest TES which captures waste heat from industrial and power plant facilities to convert into electricity.

Alternative Energy Storage Technologies— Application Analysis

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Alternative Energy Storage Technologies—Applications

North America is ahead of Europe in using TES and flywheels for renewable capacity firming and frequency regulation. Globally, the United States leads the installation of alternative storage solutions.

Energy Storage Outlook: Key Applications by Alternative ESS Technology Type, Global, 2020

Key Application	CAES	Thermal Storage	Flywheel	Supercapacitor	Regional Hotspots
Electricity/renewable energy time shifting					United States, Spain, Germany, China, South Africa and France
Renewable capacity firming					Distribution Prohibited Spain, France, Italy, man United States, India Roth
Black start					& Sullivan Licensed to Tiran Germany Frost
Electricity supply capacity					Unauthorized United States, Germany
Renewable shifting/ramping					United States, Germany, Malaysia, Israel, Spain, Portugal
Frequency regulation					Australia, United States, Spain, Antarctica
Transportation					United States, South Korea
Impact : High	Low	North America Europe	APAC ROW		Source: Frost & Sullivan
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ESS Business Model Developments

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2020 Industry Outlook—Battery Energy Storage Systems: Market Overview

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Key Battery Market Predictions for 2020

Li-ion, flow batteries, and sodium are the key battery chemistries that will be prominent in utility-scale and residential applications in 2020.

Strong global growth in capacity forecast with a large volume of projects on-going

Government incentives and supportive regulations key to market growth

Strong growth in the commercial and industrial market as businesses look to minimise energy cost risk

Storage + renewable + EVs key to attractiveness of home storage proposition

Li-ion will remain dominant, with notable growth expected for flow batteries

Licensed to Tiran Rothman

Strong partnership with Integrators will be winning formula for battery OEMs

Source Images: Wikipedia. Source: Frost & Sullivan

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Battery Energy Storage Systems—Market Analysis

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Market Size and Growth

Residential battery storage is expected to represent the largest growth segment in 2020. Growth in this segment will exceed that from the utility-scale storage segment in the United States.

Energy Storage Outlook: Revenue Forecast by Segment, Global, 2019 and 2020

• The residential battery storage market will continue to grow the fastest in 2019 and 2020 driven largely by the surge in BTM residential deployments in the United States, Germany, and Australia.
• • Being regulation driven, the utility-scale market is expected to continue its strong growth into 2020. Strong mandates in United States, Germany, and China, coupled with evolving business models, are driving this market as countries are recognizing the value of services offered by energy storage systems.

Note: All figures are rounded. The base year is 2019. Source: Frost & Sullivan

Global Battery Energy Storage Technologies Forecast for 2020

Installed capacity will reach 11.3GW in 2020, an increase of 4.1GW on 2019.

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Regional Trends—APAC

APAC is an important region, with installations in China, Australia, Japan, South Korea and India contributing to strong growth in the energy storage market with multiple battery chemistries.

	Markets	Technologies
High-growth Segment (> 20% YOY Growth)		Li-ion • Li-ion is the dominant battery technology with maximum number of installations in APAC batteries
China	2020 will maintain growth predominantly through Li-ion, with influence from megafactories.	countries.
South Korea	The growth witnessed in 2018 is unlikely to repeat; yet, storage projects are in progress and growing.	• NEC's Chinese distributor, Puxing Energy is deploying 24MW of energy storage for frequency regulation.
Japan	The country will be strongly supported by the development of NaS battery technology.	man • Li-ion is the major storage technology backed by Roth Tesla's gigafactory and megafactories. Tesla has
Australia	Solar + storage is an important segment, with strong demand for Li-ion in both the commercial and residential segments.	Distribution Prohibited & Sullivan Licensed to Tiran launched 7MWh, the largest in Asia, of emergency power in Japan. Frost
	Applications	Policies
	APAC is emerging as a hotbed for residential-scale ESS installations as more attractive products from Panasonic, Reflow (Z cell), and Tesla (Powerwall) proliferate the market. In Australia, Panasonic is collaborating with retailers and network operators to sell a complete solar PV+ storage package to residential customers.	Unauthorized In China, several supporting policies have been released, including Innovation in the Energy Storage Technology Revolution: New Action Plan (2016–2030), which outlines the roadmap for development and innovation in energy storage, project demonstrations, and tackling key problems in the industry. Additionally, to effectively integrate its large intermittent renewable resources, China's ambitious 13th FYP emphasizes the significance of energy Internet and smart energy.
	Renewable energy firming and frequency regulation are the major applications for which BESS is employed, and hotpots are China, Australia, Japan, and South Korea.	South Korea is planning to invest \$27 billion in renewable energy generation with planned incentives for solar + storage over the next 5 years.

Regional Trends—Europe

Utility-scale projects in the United Kingdom and Germany will be the major growth engine for ESS development in Europe in 2020.

Markets		Technologies
Germany	High-growth Segment (> 20% YOY Growth) Germany is the European leader in energy storage, and has reached over 150,000 residential energy storage units with a capacity above 1GWh. Commercial and utility-scale projects are also on the rise.	Li-ion	• Li-ion is set to be the dominant battery technology in the European market. A 22MW energy storage facility was inaugurated in Germany by Enel Power and its partners at Cremzow, at an investment of €17 million in 2019. A significant utility-scale storage project is setting up the trend of many more utility-scale installations in Germany.
United Kingdom	By end-2019, the United Kingdom had 1.2GW of installed storage projects. However, the increase in VAT for ESS from 5% to 20% from st 1 Oct'19 will significantly hamper growth in residential units.		Distribution Prohibited • The UK market is driven by commercial and utility man scale storage with over 10MW and over 50MW of Roth & Sullivan projects under construction. This is in addition to Licensed to Tiran the 800MW of large-scale storage projects in the pipeline.
Applications			Frost Unauthorized Policies
	The ancillary services market (transmission congestion relief and frequency regulation) will drive utility-scale applications.	• The 'Zero Carbon' fanfare with a tax increase on renewable equipment which is effective from 1 Oct'19 is likely to dampen residential storage projects as the price soars.
	Through an extension of its PV-with-storage subsidy program, Germany is expected to continue driving BTM applications in the residential and commercial sectors.	• The Department of Environment, Energy, and Sustainable Development of Northern Italian region announced €4.4 million for rebates to support residential and commercial PV storage in 2019. This is in addition to the €3 million in 2018, €4 million in 2017, and €2 million granted in 2016.
		•	The European Commission announced spending the last €11 billion of the EU research and innovation funding program Horizon 2020. Of this, €132 million will be to support development and production of batteries for energy storage in Europe.

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Regional Trends—North America

The United States will increase its global lead in installed battery storage capacity, primarily using Li-ion technology in both utility-scale and BTM applications.

Markets		Technologies
High-growth Segment (> 20% YOY Growth)		Li-ion • The commissioning of the 30MW, the world's
United States	Irrespective of the Trump administration pulling the country out of the COP21 agreement, energy storage is expected to have a strong growth in 2020 backed by Li-ion installations as well as the launch of Advanced Energy Storage Caucus to create awareness about storage in the US grid.	largest, lithium-ion battery energy facility in San Diego is attracting further large-scale energy storage installations in North America. • Strong energy storage policies in the region, ramping up of Li-ion battery production by man Tesla Giga Factory, and declining lithium
Canada	Canada has seen slow progress on BESS, with small-scale lithium-based ESS installations expected in 2020.	Distribution Prohibited battery prices will drive the BESS market. Roth & Sullivan Licensed to Tiran Frost
Applications		Policies
	Utility-scale applications for renewable energy firming, integration, electric energy time shift, and	Unauthorized • California's AB 2514 legislation mandates utilities to procure 1.3 GW of storage by 2020.
	frequency regulation will drive growth, particularly in California.	• Massachusetts and New York have set 2020 procurement mandates for 200 MWh and 100 MWh, respectively.
	BTM installations will continue to see strong adoption, driven by government incentives and significant economic benefits. The need for end users to protect themselves during blackouts and damages during hurricanes is attracting BTM installations.	• Battery storage is included as part of the California self generation incentive program (SGIP), along with a 30% federal income tax subsidy. In addition, SPIG has increased the funds for energy storage to \$141 million to meet the growing energy demand. • Maryland has a 30% tax rebate for energy storage technologies deployed between 2018 and 2022.
		Source: Frost & Sullivan

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BESS—Global Market Attractiveness

Strong energy storage mandates in the United States and APAC will result in a strong push for renewable energy storage solutions.

Energy Storage Outlook: Attractiveness of Geographic Markets for BESS, Global, 2016 and 2020

United States

In California, 1.3 GW of storage is mandated. Massachusetts and New York have implemented storage procurement mandates of 500 MW and 100 MW, respectively, for 2020. Duke Energy Florida proposed 50MW of energy storage with \$6 billion investment into renewable energy. Portland General Electric has plans of investing around \$100 million to commission 39MW of ESS projects.

India

2016

2020

Initiatives such as 175 Renewable target, National Electric Mobility Mission, National Smart Grid Mission and India's Smart Cities mission have made India an important market for energy storage globally. The country has the potential for 70GW of energy storage installation by 2022. The presence of Tesla, Panasonic, Delta Electronics, Indian Oil Corporation, and other emerging local companies makes the country an attractive market for storage.

Europe

The UK EFR program has established the first procurement plan for utilityscale battery storage systems in Europe. In addition, the UK's phasing out of coal by 2025 is a positive indication towards integration of battery energy storage. Germany extended its direct subsidization incentive for smallscale PV-coupled storage to 2018. Other key country markets in the region include Spain, Ireland, Italy, and Denmark.

2016

2016

2020

2020

Japan's FiT policy for rooftop solar comes to an end in 2019. This has made the country an attractive market, with many Chinese participants venturing into it. BYD, CATL, Trina Solar and Suntech Power are some of the companies that aim to promote battery storage systems and self-consumption in the residential, commercial and industrial segments.

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China

China's Energy Technology Revolution Innovation Action Plan (2016–2030) has progressive plans for energy storage technologies. The construction of the 200 MW Dalian Flow Battery Energy Storage Peak-Shifting Power Station National Demonstration Project has disrupted the emerging storage technology market. Licensed to Tiran Rothman Frost & Sullivan Unauthorized Distribution Prohibited

Australia

2016

2020

2016

2020

Japan Australia has the highest residential solar penetration rates in the world. 70,000 residential solar + storage installations in this country make it an attractive market in the APAC region. An additional AUD200 million towards subsidies for another 100,000 household batteries in 2020 makes Australia an important country in the energy storage market.

Source: Frost & Sullivan

Policy Support Market Maturity Supporting Infrastructure Demand Future Market Potential

Battery Energy Storage Systems—Technology Spotlight

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Technology Spotlight*

The vanadium redox flow battery (VRFB) will be the disruptor in 2020, while NaS is growing steadily.

Energy Storage Outlook: Key BESS Technology Comparison, Global, 2019
Technology	Description	Key Advantages	e c et n a k pt ar e M c c A	al et nti k ar e ot M P	e v pti x e d u n sr I Di	y urit at M	g n di n u F
Advanced Lead Acid	This battery has a mature technology and is the most widely used. It demonstrates high reliability and efficiency at the lowest cost, relative to other widely used battery technologies.	• Mature battery technology • Low cost • High recycled content • Good battery life	Mature	5 4 3 2 1	5 4 3 2 1	5 4 3 2 1	5 4 Distribution Prohibited 3 man 2 1 Roth
Sodium Based	The technology is mature and has historically represented the dominant battery technology for utility-scale grid-connect storage systems, primarily through widespread implementation across Japan.	• High energy density • Long discharge cycles • Fast response • Long life • Good scaling potential	Mature	5 4 3 2 1	5 4 3 2 1	5 4 3 2 1	& Sullivan 5 Licensed to Tiran 4 3 Frost 2 1
Li-ion	This technology has the highest energy density of all rechargeable systems operating at room temperature. Steady decline in battery costs and a smaller footprint make it the most preferred chemistry for ESS applications.	• High energy densities • Good cycle life • High charge/discharge efficiency	2018	5 4 3 2 1 5	5 4 3 2 1 5	5 4 3 2 1 5	Unauthorized 5 4 3 2 1 5
Zinc-Bromine (ZnBr)—Flow	These technologies allow instant battery rechargeability through the replacement of electrolytes, while simultaneously cycling the	• Ability to perform a high number of discharge cycles • Lower charge/discharge	2020	4 3 2 1 5	4 3 2 1 5	4 3 2 1 5	4 3 2 1 5
Vanadium Redox Flow Battery (VRFB)	spent material for re-energization. They have longer cycle lives and allow for longer discharge durations, compared to other battery technologies.	efficiencies • Very long life	2020	4 3 2 1	4 3 2 1	4 3 2 1	4 3 2 1

*The top 4 BESS technologies are discussed here. Source: Frost & Sullivan

Battery Energy Storage Technology Trends

The emergence of advanced battery chemistries presents stiff competition to Li-ion batteries.

Li-ion Chemistry Continues to Dominate

Li-ion batteries are expected to account for the overwhelming majority of battery storage additions in 2020, standing out to be the dominant chemistry accounting for more than 70% of BESS installations. Strong product lines of established leaders such as Tesla, Panasonic, Sonnen, Narada, and Fluence, coupled with strong performance in the utility storage segment by South Korean manufacturers (e.g., LG Chem and Samsung SDI) and AES Energy Storage dominate the contribution of Li-ion batteries in ESS. Launch of 'Giga Factories' and multiple 'Mega Factories', fuelled by rapidly falling lithium battery prices, should enable Li-ion to continue its dominance.

Sodium-based Battery is Truly a Game Changer

Sodium-based battery, initially installed in from Japan, now has acceptance in all geographies. Recent technological advancements have ensured the utilization of sodium batteries for micro grids and remote location grids. NaS batteries have a strong presence in Japan and other Asian countries, while the United Kingdom, Ireland, Germany, Italy and Middle East are the other promising markets. With advanced design features and application portfolio, this technology is expected to prove its worth by 2020, and the next decade will then see a strong push for sodium-based batteries. Licensed to Tiran RothmanFrost & Sullivan Unauthorized Distribution Prohibited

VRFB will Gain Momentum in 2020

Utility-scale is becoming a well-established market for flow batteries with multiple projects planned till 2020. Non-degradable, non-flammable vanadium redox flow batteries are seen as the best alternative to Li-ion chemistries for utility-scale storage. Recent fire accidents from Li-ion storage have made vanadium redox as a suitable option for utility, commercial and industrial storage. The success of the Dalian project has added to the credibility of this chemistry, which could disrupt the existing business model. There are over 100 VRFB installations with a capacity of over 209 MWh globally. Australia, the United States, and China account for over 70% of these energy storage installations. Availability of vanadium as a raw material as well as the strong presence of local manufacturers favors Australia to be an important market. The highly competitive nature of the Li-ion battery market ecosystem with several participants across multiple applications has shifted the attention towards flow batteries as they are used only in the energy storage market.

Source: Frost & Sullivan

Key Technology Trends

New emerging technologies in ESS are researched and developed at various institutions.

Battery Energy Storage Systems—Global Policies

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Storage Market Policies—Global Incentives

United States Germany

• Federal Energy Regulatory Commission (FERC) approved Order No. 841 in Feb'2018, that requires Independent System Operators (ISO) and Regional Transmission Organizations (RTO) to remove barriers to entry for energy storage technologies.
• DoE Advanced Research Projects Agency (ARPA-E) allocated a \$30 million funding to Duration Addition to Electricity Storage (DAYS) program for developing new storage facilities in the United States.
• In addition to federal policies, Massachusetts, New York, New Jersey, Oregon and Arizona have come up with supportive policies that promote energy storage.
• Massachusetts has set a goal of 1000 MWh of energy storage by 2025, through a regulation in July 2018. Similarly, New York has set a goal of 1500 MW of energy storage by 2025, and has invested \$200 million towards this program.

• • Law HB 2193 in Oregon mandates 5MWh of energy storage in the grid by 2020, while New Jersey passed A3723 in 2018 that set a target of 2000MW by 2030. Similarly, Arizona has proposed a target of 3000 MW for energy storage by 2030.

• Electricity stored in a storage system qualifies for the feed-in premium (Marktprämie), which is granted to the plant operator under the Renewables Act 2017 (EEG 2017) once the electricity is fed into the public grid.

• A specific provision of the EEG 2017 ensures that the EEG surcharge is not imposed twice on the electricity stored in a storage system, but only on the electricity fed from the storage into the public grid. Licensed to Tiran Rothman Frost & Sullivan Unauthorized Distribution Prohibited

South Korea

• South Korea's Green Energy Policy is continuing to drive energy storage installations in the country.
• However, a series of fire accidents in 2018, and the probe into them is 2019, made United States to surpass South Korea to become to the leader in energy storage installations.
• However, favorable subsidies for both ESS consumers and producers drive ESS installations in the country.

Storage Market Policies—Global Incentives (continued)

Australia China

• Following Clean Energy Council (CEC), the National Energy Guarantee (NEG) plays a major role in promoting energy storage in Australia.
• This agency, with government support, is likely to have 70,000 Australian households fitted with batteries in 2019, which makes Australia account for 30% of the global household battery market.
• Australian Renewable Agency (ARENA) has committed a minimum of \$20 million for flexible capacity and energy storage demonstration, as a part of advancing renewables program.
• ARENA is funding a \$7.7 million support to Simply Energy to deliver up to 1200 homes with rooftop solar systems.

• The country is planning to install between 150,000 and 450,000 battery storage systems by 2020.

• The 2017 Document 1701 "Guidance on the Promotion of Energy Storage Technology and Industry Development" (NDRC and NEA with MOF, MOST, MIIT) is a regulation for promoting energy storage in China. Unauthorized Distribution Prohibited

• This document released in 2017 is still the only proper legislation or guideline for the Chinese energy storage industry. The release of this guideline paved way for massive growth. Licensed to Tiran RothmanFrost & Sullivan
• Both China State Grid and China Southern Grid released "Guiding Opinions" policies for the development of energy storage, that boosts grid-connected storage.
• Launch of these guiding opinions paved way for large-scale grid-side energy storage projects in Jiangsu, Henan, Beijing, and Zhejiang, increasing China's total energy storage capacity from 3% to 21.4%.

2019 Industry Outlook—Battery Storage (Consumer, Industrial, and EV Applications)

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Battery Storage Trend for Consumer, Industrial, and EV Applications

Lead acid chemistry will lead in industrial applications, while Li-ion in EVs will lead in consumer devices.

Li-ion to Dominate

Li-ion is the most prominent battery powering EVs, mobile phones, laptops, and most other widely used consumer gadgets. This chemistry has almost become a monopoly in powering these devices. Despite the failure of Li-ion batteries in the Samsung Note 7, Li-ion will continue to exert influence in 2020; however, new technologies, such as solid-state batteries, will be tested for applications in laptops, mobile phones, tablets, and wearable gadgets in 2020. This product is witnessing steady growth every year, with a gradual increase in the number of applications to which it caters. This trend will continue in 2020 in the consumer electronics space as well. Licensed to Tiran Rothman Frost & Sullivan Unauthorized Distribution Prohibited

Lead Acid to Continue Leading in Industrial Applications

Lead acid battery technology is considered the most dependable, affordable, and proven for backup applications in UPS and inverters. In the multi-billion dollar UPS industry, lead acid chemistry is still in demand for this application. Major application sectors such as telecom and UPS are still in the nascent stage in terms of Li-ion battery adoption with increased acceptance expected in the next 3-5 years.

Li-ion Battery to be the Unchallenged Chemistry in EVs

Li-ion has established itself as the dominant technology owing to the consolidated value chain, proven performance and falling prices. The price of the EV Li-ion battery has dropped significantly during the past 5 years and is expected to hit \$100 per kWh by 2020. However, R&D efforts have been in full swing to look beyond Li-ion. Most notably, Fisker has been making the headlines for its solid-state batteries with higher energy and safety features, as well as being more light weight than Li-ion batteries.

Market Size and Growth

Battery energy storage for industrial applications witness strong demand and growth, while that for consumer applications is seeing a steady price reduction although unit volumes increase.

Energy Storage Outlook: Li-ion Battery Revenue Forecast by Segment, Global, 2019 and 2020

The consumer electronics segment is witnessing a slow growth as it has become a commoditized market, with stiff pricing pressure and intense competition. However, the segment maintains the largest share of unit shipments, with a steadily rising demand from smartphones, tablets, mobility devices, gaming, and audio and video devices. APAC will remain the hub for consumer battery manufacturing, with more than 50% of the total production based in this region.

The industrial applications segment is a strong growth area for Li-ion batteries because of the increasing usage of this battery chemistry in material handling equipment, military, medical, communication equipment, and cordless tools and drills. Key growth sectors for 2020 would be batteries for electric forklifts, cordless power drills , equipment in military sector, with its greater utilization of various remote target acquisition capabilities, such as drones, and the medical sector, with its wearable patient monitoring devices and portable medical diagnostic devices.

Note: All figures are rounded. The base year is 2019. Source: Frost & Sullivan

EV Battery Market Size and Growth

The EV market will drive production, innovation, and cost efficiencies for Li-ion batteries and battery systems.

The Li-ion battery market for EVs and HEVs is expected to witness steady growth in 2019 and 2020, as the projects are launched at a steady pace owing to the global slowdown, specifically in the automobile industry. However, the demand for EVs is modest in China, Europe, and North America. Li-ion batteries are thus projected to grow at 20.9% from 2019 to 2020. Continued growth in the global EV market, with most countries having the long-term goal of eliminating fossil fuel vehicles, coupled with a steady decrease in battery costs per kW, will drive the demand for Li-ion batteries.

Note: All figures are rounded. The base year is 2019. Source: Frost & Sullivan

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Battery Storage (Consumer, Industrial, and EV Applications)—Regional Analysis

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Regional Trends—APAC

China will be the largest energy storage market, driven by affordable battery pricing and large-scale project installations.

	Markets		Technologies
China South Korea Japan	High-growth Segment (> 10% YOY Growth) Despite the slowdown in 2019, China is a high growth market due to high domestic demand and Chinese participants expanding their footprint to other countries excluding the United States. South Korea witnessed the highest growth in 2018 and this trend will continue in 2019 and 2020. Supportive policies and domestic demand drive battery demand across all applications. 10-year FiTs for households is expiring, and so residential storage is increasing. CATL is venturing into Japan to benefit from the rising demand in residential, commercial, automotive and industrial sectors.	Solid-state batteries are an emerging trend in Solid-State replacing conventional Li-ion cells. EV, industrial Batteries and commercial applications will witness explosive growth in usage of solid-state technology. China is leading in this product, while APAC region will be a strong market by 2020. Japan will be an important market in using solid man state batteries in EVs. Toyota has formed a team Roth exclusively to develop advanced solid-state & Sullivan batteries in its EVs by 2020. Licensed to Tiran Frost
	Applications	Market Trends
• The EV battery market is expected to grow markedly as APAC battery material manufacturers are ramping up battery production capacity. In particular, Panasonic which produces Li-on batteries domestically as well as in Nevada, US, for Tesla is stepping up its production to cash in on the explosive growth in the EV market. • The demand from consumer equipment will likely witness a stable trend, with growth largely from OEMs. The EV market is increasing targeting 5 million EVs on the road by 2020.		Unauthorized • The EV market sees intense competition with major market participants such as LG Chem (South Korea), BYD (China), Panasonic (Japan), and Samsung SDI (South Korea) constantly increasing their production capacities to meet the unprecedented demand for storage solutions. The battery manufacturing trend is shifting away from the clutches of South Korea and Japan towards China with CATL, Lishen, BYD and CALB constructing mega factories as part of the "Made in China 2025" plan to increase the country's cumulative battery capacity to nearly 175 GWh by 2021.
		•	India is also emerging as an attractive market for energy storage in

• Industrial applications, such as cordless drills, power tools, medical devices, and military equipment, that find Li-ion ideal for specific equipment will drive growth.

the EV and consumer electronics space with a focus on "Make in

India" and spurred by the "Digital India" revolution.

Regional Trends—Europe

Wearable devices, advanced smartphones, and unprecedented EV production rates are driving the demand for advanced Li-ion batteries in Europe.

	Markets		Technologies
	High-growth Segment (> 20% YOY Growth)		Li-ion is expected to be the dominant battery
	With its ability to adopt advanced technology, Germany is proceeding towards 5G, which will	Li-ion	technology in the consumer electronics segment across Europe.
Germany	demand better smartphones with advanced batteries.		Smart batteries (batteries with embedded electronics to control and initiate charging algorithms) are gaining significance in the
	The demand for Li-ion batteries in the United Kingdom is driven by wearable devices for		telecom and consumer electronics sectors. man
United Kingdom	medical and communication purposes, mobile phones, and mobile-based remote management devices for healthcare support.		Distribution Prohibited In Germany, with consistent R&D, a EV battery Roth & Sullivan price of €300 was achieved in 2017, while Licensed to Tiran IEA predicts the global average to drop to €283 per kWh by 2020. Frost
	Applications		Market Trends
	Advancements to the telecom infrastructure will play a major role in the consumer battery market. With advancements in telecom networks (e.g., LTE upgrading to 5G), smartphones are dependent on better batteries.	•	Unauthorized Europe is one of the key markets for wearables with major demand emanating from Germany, the United Kingdom, and France. Fitness tracker is the most widely used wearable device in both Germany and the United Kingdom.
	There is a bright outlook for the adoption of flexible batteries in the European region owing to the demand from industrial and consumer electronics applications in Western European countries.	•	Europe is planning its own gigafactory to capitalize on the EV revolution. LG Chem is opening Europe's largest Li-ion factory in Poland by 2019. Other companies such as Daimler, and NorthVolt look set to make up for the lost ground.
			Source: Frost & Sullivan

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Regional Trends—North America

The widespread use of tablets, smartphones, and Internet of Things (IoT) makes Li-ion batteries the power hub for smartphones that connect and control multiple gadgets.

Markets Technologies

High-growth Segment (> 20% YOY Growth)

The United States remains the focal point of innovation, nurturing breakthroughs in the industrial battery ecosystem. Major manufacturing facilities in the country, backed by strong R&D spending, are constantly introducing high-performance battery technology in the mix to flex their muscles. The launch of advanced gadgets tagged to mobile phones makes them an important device in the United States. Wearables will continue to drive the growth of thin film batteries as well.

Li-ion

As the most sought after battery chemistry, Li-ion is reaching its limit, thus paving the way for advanced chemistries, such as metal-air, flow batteries, and NaS.

The US DOE had projected that the battery price would fall to \$125 per kWh by 2022; however, current trends show that the price is expected to reach \$100 per kWh by 2020. Licensed to Tiran Rothman Frost & Sullivan Unauthorized Distribution Prohibited

A boom in wearable devices and IoT is driving battery manufacturers to invest heavily in producing batteries that are flexible, thin, and stretchy. Curved, foldable, and pin-sized batteries are some good examples.

With the completion of Tesla's Gigafactory in Nevada, Li-ion battery production is expected to cross the 4.9 gigawatt-hour (GWh) capacity. The increased production is expected to meet the demand from the EV industry.

• Applications Market Trends
  • The Joint Center for Energy Storage Research (JCESR) is functioning with a \$120 million grant from the DOE in collaboration with major scientists and companies to develop breakthrough advanced battery technologies. This is likely to open up new manufacturing opportunities that would surpass Asian capacities.
  • The consumer and industrial market is driven by innovation, with multiple players staking claim in this lucrative industry. Vuzix is one of the first companies to produce a device that can be used for industrial applications. The device has embedded, customized software suitable for industries. The wearable eye piece, supported by iOS and Android applications, includes a long-lasting battery for up to 12 hours of operation.

Source: Frost & Sullivan

Growth Opportunities and Companies to Action

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Growth Opportunity 1—New Manufacturing Destinations

	Applicable Segments	Automotive	Commercial	Industrial	Residential
Vision Transformation		Context and Opportunity		Call to Action
Mega Trends' Impact	•	Over 55% of the total production	•		Europe is expected to have over Distribution Prohibited
Disruptive Applications		capacity is concentrated only in China, Japan and South Korea.		10 battery manufacturing plants man for the automotive segment with Roth & Sullivan a production capacity of over
Business Models	•	With growing demand from North
Current Offerings		America and Europe, companies		180 GWh by 2025. • Companies should develop
New Capabilities		are looking to set up production facilities closer to these markets.		strategies to widen their market	Licensed to Tiran Frost Unauthorized
Value-add Services	•	Further, with the trade war between China and the United States, it is imperative for countries to focus on setting up		presence by setting up plants in countries including Mexico,
Vertical Integration				Turkey, Poland and other countries that are closer to the
Geographic Expansion		facilities in diverse geographical		growing markets like the United States and Europe.
Partnerships		locations, preferably closer to the demand centers.
Investment/M&A

Growth Opportunity 2—Partnerships

	Applicable	Automotive	Commercial		Industrial	Residential
	Segments
Vision Transformation		Context and Opportunity			Call to Action
Mega Trends' Impact				•
Disruptive Applications		• Currently, global lithium production is controlled by a few companies, namely Tianqi (Australia), SQM (Chile), Albemarle (United States), FMC (United States) and Orocobre (Argentina). • With a surge in demand for Li-ion batteries, existing players are expected to increase their capacity while new players are expected to enter the market. • A number of companies like BASF, LG Chem, DuPont, 3M are entering the battery materials			With a €400 million multi-stage Distribution Prohibited investment, BASF has selected man Finland as its initial location for Roth producing battery materials to & Sullivan Licensed to Tiran serve the European market. Frost • Johnson Matthey expects to start Unauthorized battery material production in 2021–2022 with reduced cobalt content. • Battery manufacturers should partner with such new entrants
Business Models
Current Offerings
New Capabilities
Value-add Services
Vertical Integration
Geographic Expansion					to ensure a reliable supply of materials and better bargaining power.
Partnerships
Investment/M&A	market.

Strategic Imperatives for Success and Growth—Critical Success Factors for Growth of ESS Technologies across Regions

Next to BESS, molten salt technology has the highest market potential among ESS technologies. Molten silicon TES, which has 10 times higher energy density and 50% higher efficiency than the molten salt type, has been developed in Spain. These advantages make molten silicon TES an ideal candidate to replace the molten salt technology. In addition, smart ice storage system is finding more takers in the United States and Europe.

Deep understanding of the BESS technology is currently a roadblock for its widespread adoption. It is imperative for companies in this market to have a strong local presence with technical teams that can be readily dispatched to the site in case of any technical issues. Licensed to Tiran Rothman Frost & Sullivan

Companies should embrace technologies such as energy storage virtual power plants to not only reduce the demand charges during peak demand periods but also offer a revenue generation opportunity by participating in utilities' DR and other load-balancing programs. This will provide a strong business opportunities for ESS. The most attractive business case for VPP are in the United States, Japan, Canada and Australia with pilot projects already being run. Unauthorized Distribution Prohibited

Integration of innovative business models and multiple revenue streams such as revenue stacking must be adopted by storage providers to tap the full potential while enhancing the attractiveness of energy storage solutions. ESS companies, project developers, and ESS aggregators have to forge partnerships with stakeholders across the energy value chain (such as ISOs, TSOs, DSOs, and GENCOs) for the proper functioning of the emerging business models.

Source: Frost & Sullivan

Critical Success Factors

Value Chain—Alternate Battery Energy Storage Systems

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Battery Energy Storage Systems Value Chain

• Parker Hannifin • Korea Electric Power • Convergent • General Electric • Princeton Power Corporation (KEPCO) • SAFT	Project BESS Power Developers Technology Electronics Providers Suppliers • AES • Redflow • ABB • Acme Electric • Aggreko • NGK Corporation INSULATORS • NEC Energy • Alfen Solution • BYD • • Wartsila • Sumitomo • (Greensmith Inc. • Tesla Energy) • LG CNS • Samsung SDI • GE industrial • S&C Electric • LG Chem • Dynapower • LG CNS • Kokam • Eaton Corporation • Advanced • Hyosung Corporation • FIAMM Energy Microgrid Storage • Nidec ASI	Utilities • Consolidated Edison Company of New York (Con Edison) • Duke Energy • EDF Renewable Eugana Technologies Energy Clean Energy Storage • Enel • National Grid • E.on • RWE AG • San Diego Gas & Electric (SDG&E) • Hawaiian Electric Company	Software Solutions • Stem Inc. • Greencharge • Wartsila (Greensmith Energy) • Geli • Fluence • JLM Energy • Sunverge • Advanced Microgrid	System Integrators • ABB • 1Energy Services, LLC • AES Energy Storage • Alfen • Bosch • EaglePicher Technologies • Ecoult • Energy Made Clean (EMC) • FIAMM Energy	O&M Operator s • California Solar Electric Distribution Prohibited • Canadian Solar man Solutions Inc. Roth & Sullivan • Alfen Licensed to Tiran • Global Energy storage Frost Solutions Unauthorized • San Diego Gas and Electric
• Kyushu Electric Power Energy • NEC Energy • S&C Electric Storage Solutions Company Solutions, Inc. • Duke Energy • Schneider Electric • Pacific Gas & • Engie Storage • Panasonic Electric • Tesla • Woojin Industrial • Ingeteam Systems • Southern California • Simpliphi • Nextra Energy • Princeton Power Edison Power • ZBB Energy Systems Corporation • Terna • Powin Energy • Tesla • SMA • Western Power • Adara Power • Bosch Source: Frost & Sullivan	Solutions Solutions Power + Systems		Solutions, Inc.	Storage Solutions • Global Energy

Flywheel Storage Stakeholders

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Thermal Energy Storage Stakeholders

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Compressed Air Energy Storage Stakeholders

• Hydrostor
• Dresser-Rand
• Sustain X
• ALACAES

• General Compression, Inc.

• E.ON

• Southern California Edison
• WEB Aruba N.V.ctric
• • New York State Electric & Gas

• Iberdrola USA

• ATK Launch Systems

• Apex Compressed Air

• Storelectric Ltd
• NRStor

Project Developers Utilities

Licensed to Tiran Rothman Frost & Sullivan Unauthorized Distribution Prohibited

Source: Frost & Sullivan

Energy Storage Technology Providers

Supercapacitors Energy Storage Stakeholders

• Ioxus
• Panasonic
• Nesscap
• Murata Manufacturing
• Nippon Chemi-Con
• AVX corporation
• Skeleton Technologies
• Yunasko
• Maxwell Technologies
• Supreme Power Solutions
• Aowei Technology
• SAFT

Integrators

• Electrical Power worX Corp
• ABB Envitech, Inc.
• • Northern Power
• Woojin Industrial Systems
• Ingeteam
• Win Inertia

Power Electronics Providers

Source: Frost & Sullivan

Companies to Watch—New Product/Technology/Service Launches in 2020

ESS Inc		Innolith
North America	Energy WarehouseTM System: launched in Europe through a	Switzer land	Energy-dense storage solutions with 1KWh density for multiple applications
	partnership with InoBat	Fluence
BlueSky Energy		Global	Energy storage technology and services
Austria	Compact, ready to connect, plug-and	Distribution Prohibited man Adara Power
	play saltwater power storage solutions	North	Roth & Sullivan Solar + Storage battery energy storage
Powin Energy Corporation		America	system
Stack140 is a modular, purpose-built North		Licensed to Tiran Frost Alfen
America	125KW/140KWh to multiple MW storage Solutions		Unauthorized Industrial plug-and-play energy
Energy Nest		lands	storage solutions
		Simpliphi Power
Norway	TES solutions in Europe	The U.S	Simplified storage solutions using Li-ion batteries
Climate Change Technologies		Greensmith Energy Storage
Australia	TES is offered as a battery as Thermal Energy Device (TED)	The U.S	GridSolv: Li-ion based standardized battery energy storage system

Key Conclusions

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Battery energy storage will represent the fastest growing market for distributed energy storage systems in 2020.

Energy Storage Outlook: Key Conclusions and Future Outlook, Global, 2020

Excluding BESS, TES will see the highest growth among energy storage technologies in 2020. Nearly 836 MW will be added globally in 2020, with a overall installed capacity of above 6GW.

The United States and China are set to be the major two participants both in terms of number of installations and installed capacity. South Korea, which witnessed significant growth in 2018, is likely to slip to the top 5 positions along with Germany. In addition to the Asian countries, Middle East countries including UAE are joining the trend of large-scale energy storage installations. Licensed to Tiran Rothman

APAC, and in particular China, South Korea, Australia and India, is turning out to be the most attractive market for BESS. The Luneng Haixi Multi-mixed Energy Demonstration Project integrates 650MW of combined wind, solar and CSP and uses CATL's lithium-ion storage, adding 100MWh of storage.

Lithium battery chemistry will continue to dominate the BESS market in terms of installed capacity; however, flow batteries and sodium-based batteries are likely to make significant inroads in 2020.

Compressed air and supercapacitors are the other two storage technologies that are gaining momentum. However, inherent challenges in these systems limit the technologies from growing at the same pace as the overall energy storage industry.

Source: Frost & Sullivan

Frost & Sullivan

Legal Disclaimer

Frost & Sullivan is not responsible for any incorrect information supplied to us by manufacturers or users. Quantitative market information is based primarily on interviews and therefore is subject to fluctuation. Frost & Sullivan research services are limited publications containing valuable market information provided to a select group of customers. Our customers acknowledge, when ordering or downloading, that Frost & Sullivan research services are for customers' internal use and not for general publication or disclosure to third parties. No part of this research service may be given, lent, resold or disclosed to noncustomers without written permission. Furthermore, no part may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the permission of the publisher. Licensed to Tiran Rothman Frost & SullivanUnauthorized Distribution Prohibited

For information regarding permission, write to:

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© 2020 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property of Frost & Sullivan. No part of it may be circulated, quoted, copied or otherwise reproduced without the written approval of Frost & Sullivan.

Appendix

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Abbreviations and Acronyms Used

APAC	Asia-Pacific	FDI	Foreign Direct Investment
ARES	Advanced Rail Energy Storage	FiT	Feed-in-tariff
BESS	Battery Energy Storage System	FMCG	Fast-moving Consumer Goods
BTM	Behind-the-meter	GDP	Gross Domestic Product
C&I	Commercial and Industrial	GW	Gigawatt
CAES	Compressed Air Energy Storage	GWh	Gigawatt-hour
CAPEX	Capital Expenditure	HESS	Hybrid Energy Storage System
CPUC	California Public Utilities Commission	HEV	Hybrid Electric Vehicle
CSP	Concentrated Solar Power	HVAC	Heating, Ventilation, and Air
EFR	Enhanced Frequency Regulation		Conditioning
EPC	Engineering, Procurement, and	IoT	Internet of Things
	Construction	kWh	Kilowatt-hour
ESS	Energy Storage System	LED	Light-emitting Diode
EU	European Union	Li-ion	Lithium-ion
EV	Electric Vehicle	Li-S	Lithium-Sulphur
		METI	Ministry of Economy, Trade and Industry
		MW	Megawatt

Source: Frost & Sullivan

Licensed to Tiran Rothman

Frost & Sullivan

Unauthorized Distribution Prohibited

Abbreviations and Acronyms Used (continued)

• NAFTA North American Free Trade Agreement
• O&M Operations and Maintenance
• OEM Original Equipment Manufacturer
• OLED Organic Light-emitting Diode
• OPEC Organization of the Petroleum Exporting Countries
• OPEX Operational Expenditure
• PV Photovoltaic
• R&D Research and Development
• RCEP Regional Economic Comprehensive Partnership
• RoHS Restriction of Hazardous Substance
• ROW Rest of World
• SGIP Self-generation Incentive Program
• T&D Transmission and Distribution
• TES Thermal Energy Storage
• TISA Trade in Services Agreement
• ToU Time-of-use
• UPS Uninterruptible Power Supply
• V2H Vehicle-to-home
• VRFB Vanadium Redox Flow Battery
• Wh/Kg Watt-hour per Kilogram
• ZnBr Zinc-Bromine

Source: Frost & Sullivan

Market Engineering Methodology

One of Frost & Sullivan's core deliverables is its Market Engineering studies. They are based on our proprietary Market Engineering Methodology. This approach, developed across the 50 years of experience assessing global markets, applies engineering rigor to the often nebulous art of market forecasting and interpretation.

A detailed description of the methodology can be found here.

Source: Frost & Sullivan

List of Exhibits

Exhibit	Slide Number
Energy Storage Outlook: ESS Installed Capacity by Technology and Region, Global, 2020	9
Energy Storage Outlook: Alternative ESS Technology Installed Capacity, Global, 2019 and 2020	10
Energy Storage Outlook: Battery Technology Installed Capacity, Global, 2019 and 2020	11
Energy Storage Outlook: Technology Lifecycle, Global, 2020	18 man
Energy Storage Outlook: TES Capacity Addition Status, Global, 2020	Distribution Prohibited Roth 20
Energy Storage Outlook: Ongoing TES Projects, Global, 2020	& Sullivan Licensed to Tiran 20
Energy Storage Outlook: CAES Capacity Addition Status, Global, 2020	Frost Unauthorized 21
Energy Storage Outlook: CAES Installed Capacity by Region, Global, 2020	21
Energy Storage Outlook: Flywheel Capacity Addition Status, Global, 2020	22
Energy Storage Outlook: Flywheel Energy Storage – Ongoing Projects by Region, Global, 2019	22
Energy Storage Outlook: Supercapacitors Revenue Forecast in Transportation, Global, 2019 and 2020	23
Energy Storage Outlook: Supercapacitors Ongoing Projects by Region, Global, 2020	23
Energy Storage Outlook: Alternative ESS Technology Installed Capacity, Global, 2019 and 2020	26

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List of Exhibits (continued)

Exhibit	Slide Number
Energy Storage Outlook: Capacity Addition, North America, 2019	27
Energy Storage Outlook: Capacity Addition, Europe & Israel, 2019	28
Energy Storage Outlook: Capacity Addition, APAC, 2019	29
Energy Storage Outlook: Key Applications by Alternative ESS Technology Type, Global, 2020	31
Energy Storage Outlook: ESS Business Models—Emerging Models and Trends across the Energy Value Chain, Global, 2019	Distribution Prohibited man Roth 32 & Sullivan
Energy Storage Outlook: Revenue Forecast by Segment, Global, 2019 and 2020	Licensed to Tiran 36
Energy Storage Outlook: Battery Technology Installed Capacity, Global, 2019 and 2020	Frost Unauthorized 37
Energy Storage Outlook: Attractiveness of Geographic Markets for BESS, Global, 2016 and 2020	41
Energy Storage Outlook: Key BESS Technology Comparison, Global, 2019	43
Energy Storage Outlook: Key Technology Trends, Global, 2020	45
Energy Storage Outlook: Li-ion Battery Revenue Forecast by Segment, Global, 2019 and 2020	51
Energy Storage Outlook: Total EV Units, Global, 2018–2019	52
Energy Storage Outlook: Automotive EV Li-ion Battery Revenue Forecast, Global, 2019–2020	52
Energy Storage Outlook: Key Conclusions and Future Outlook, Global, 2020	69

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