Innovative Modularisation Ushers in New Era of Energy Storage

Starting from the energy storage sector, the report provides a comparative analysis of current mainstream energy storage technologies, examines the development status and trends of the electrochemical energy storage industry, and further explores the innovative technological advantages and commercialization scenarios of fully modular energy storage as a next-generation solution in the field.

Renewable energy refers to energy derived from naturally replenishing sources that are virtually inexhaustible. The main sources of renewable energy include solar energy, wind energy and hydropower. Addressing the challenge of climate change has become a shared international goal. Countries worldwide are adopting policies and measures to make renewable energy a priority, with the ultimate goal of reaching a state of carbon neutrality.

As the clean energy transition progresses, the cumulative installed capacity of global renewable energy is expected to increase from 4,552 GW in 2024 to 9,091 GW in 2029, with a CAGR of 14.8%. Furthermore, the capacity of solar power is growing faster than other major renewable energy sources. From 2019 to 2023, the installed capacity of solar power increased from 586 GW to 1,467 GW, reflecting a CAGR of 25.8%, and is expected to reach 5,365 GW in 2029.

Source: IEA，IRENA，Frost & Sullivan

The electrochemical energy storage system can be categorized as centralized ESS or distributed ESS (DESS) based on applicable scenarios. The centralized ESS is extensively utilized in power generation, enabling peak load levelling, renewable energy grid connection, and reserve electric generating capacity. Moreover, in power transmission and distribution, it supports system frequency modulation, alleviates power grid congestion, and delays extensive T&D equipment upgrades. Distributed ESS includes commercial and household applications and manages electricity on a temporal basis by peak shaving, valley filling, and peak valley spread arbitrage. It smooths out electricity demand and helps end-users save on their electricity costs.

Source: Frost & Sullivan

In the early stages of industry development, solar PV as a renewable energy source grew rapidly. As the scale of solar PV power generation expanded, the trend of integrating solar PV with DESS emerged to address the instability of solar power. Currently, due to the high investment cost, installation and maintenance challenges, and limited application scenarios of standalone solar PV and DESS, the market for integrated DESS solutions is growing rapidly. In the future, with the rapid development of the new energy vehicle market and artificial intelligence technology, integrated DESS solutions equipped with AI and charging modules will become one of the main trends.

Source: Frost & Sullivan

With the ongoing expansion of global large-scale renewable power projects, the annual shipment of global centralized ESS is expected to increase from 125.5 GWh in 2024 and 461.3 GWh in 2029 with a CAGR of 29.7%. In addition, to improve the efficiency of electricity consumption in both commercial and living scenarios, as well as to improve the stability and sustainability of urban electricity consumption, the annual shipment of distributed ESS is expected to reach 331.7 GWh in 2029, with a CAGR of 33.2% from 2024 to 2029.

Source: Frost & Sullivan

The establishment of cloud platform systems is one of the keys to integrating the ESS with AI technology. The cloud platform systems, based on cloud-native technologies, possess characteristics such as high concurrency, high reliability, large capacity and low latency. They are capable of interfacing with a vast number of distributed photovoltaic power generation devices and processing massive amounts of data from energy scenarios such as photovoltaics, energy storage batteries, and charging/discharging. The cloud platform systems can clean and process data from millions of devices, laying a solid foundation for applications in energy security, energy planning, intelligent customer service and power trading.

AI can improve the safety and stability of the system by means of real-time monitoring, fault early warning and intelligent diagnosis, and at the same time, it can provide intelligent optimization suggestions for energy use based on user behavior, which can reduce costs and increase efficiency in many dimensions, and empower the development of the energy storage industry.

Source: Frost & Sullivan

The fully modular energy storage system is an upgraded energy storage solution based on the modular design concept. Early large-scale energy storage stations (typically grid-side installations) mostly used non-modular systems, where multiple battery clusters were consolidated under centralized inverter control. These systems have fixed structures and lack the adaptability to adjust the storage capacity according to demand. With advancements in energy storage technology and the rise of distributed energy storage, modular solutions—dividing systems into independent units—have become the mainstream for C&I use due to their flexibility, scalability, and safety. Fully modular energy storage systems achieve further optimization through battery pack-level management and stackable design, which improve control accuracy, minimized fault impact, and simplified O&M efforts.

Source: Frost & Sullivan

The fully modular energy storage system adopts battery pack-level management.  Building upon traditional modular energy storage systems, the fully modular solution represents a significant upgrade—shifting from battery cluster-level management to battery pack-level management. By integrating optimizers with each battery pack, the system achieves pack-level management and safety protection and more precise cluster-level control. Stackable battery pack design that eliminates external wiring requirements.

Source: Frost & Sullivan

●Easy installation and space optimization：

The fully modular design integrates energy storage inverter, battery and management system to form a fully functional and compact independent unit with a small footprint suitable for space-constrained application scenarios. The stackable design reduces the complex wiring between the equipment, and at the same time, the equipment is lighter, making the transportation and installation process easier and faster, reducing the difficulty and time cost of construction.

●Safety：

Fewer connection points between devices reduces the risk of failure. Battery pack-level management supports multiple protections, including overcharge, over discharge, overcurrent, overheating, and short circuit.

●Scalability and flexibility：

With a highly flexible design and low initial capacity, it supports gradual expansion based on actual demand, avoiding high upfront investment. Modular stackable design enables easy and quick battery replacement and upgrades. Battery pack-level optimization enables better compatibility between new and old batteries.

●Reliability：

With a parallel battery pack design, faulty modules can be isolated without affecting others, minimizing fault impact. In a stackable design, failed modules can be quickly replaced, reducing maintenance time.

●Efficiency：

Battery pack-level management reduces mismatch issues in series connections, greatly improving system capacity utilization. In PV scenarios, DC coupling is typically used to minimize energy loss.

Source: Frost & Sullivan

In C&I energy storage applications, systems are typically deployed as integrated cabinets with battery packs fixed on racks. These packs are non-stackable and typically employing series-connected packs within battery clusters and parallel connections between clusters. While this conventional approach offers reliability, it faces limitations in flexibility and scalability. The rapid growth of energy storage demand among small and medium-sized C&I users has driven the emergence of fully modular solutions with enhanced adaptability.

Global shipments of fully modular C&I energy storage systems are expected to reach 8.0 GWh in 2025. With rising awareness and ongoing tech advancements, shipments may grow to 36.8 GWh by 2029, showing strong market potential.

Source: Frost & Sullivan

Sigenergy Technology Co., Ltd. is a forward-thinking company focusing on developing cutting-edge home and business energy solutions, including energy storage systems, solar inverters, and EV chargers. Its world-class R&D team of hundreds of industry talents shares the vision of making the world greener through continuous innovation. By integrating the latest power electronics, digital, and AI technologies, the company builds next generation energy products with optimum safety features. With global sales and services, the company aims to become its customers' most trusted partners on their journey to a more sustainable future.

Sigenergy’s main products cover 5-in-one SigenStor, C&I modular ESS SigenStack, C&I inverter, energy gateway and Sigen Cloud. Sigenergy’s products feature a concise and efficient modular design. Through flexible modular configurations, a single product adapts flexibly to diverse applications. In residential, commercial, and industrial settings, Sigenergy’s solutions leverage modularity for rapid adjustments, meeting varying customer needs while delivering efficient and intelligent energy solutions.

Source: Sigenergy Website, Frost & Sullivan

Source: Sigenergy Website, Frost & Sullivan