ENERGY RESILIENCE MARKET Challenges and Opportunities

Key challenges faced by the global energy resilience market includes high initial investment costs associated with setting up energy storage and backup systems. These heavy initial costs put severe financial constraints on consumers, businesses, industrial facilities and policymakers that want to transition to cleaner and distributed sources of energy but have limited capital. According to data by International Energy Agency, in 2020, nearly 75% of electricity generation projects globally were cancelled or delayed due to lack of funding amid pandemic recession.

Market Opportunity- Technological advancements in energy storage

Major opportunities for this market include ongoing technological advancements in the field of energy storage. Lithium-ion battery costs have declined sharply over the past decade due to scaling up of production and continuous R&D enabling higher energy densities. Battery technology in particular has progressed significantly in recent years, driving down costs and improving performance of energy storage solutions for applications ranging from residential to utility-scale. According to the International Renewable Energy Agency (IRENA), global battery energy storage deployments grew 85% from 2020 to 2021, reaching a total capacity of 21 GW in 2021.