SEOUL, Jan. 23 (Korea Bizwire) — The energy storage system (ESS) industry, once spotlighted as a newly rising industry, is on the verge of a serious slump.
The Hyundai Research Institute reported on Wednesday that the prolonged probe into fire accidents caused by ESS devices is slowing down the growth of the ESS market in South Korea despite positive growth trends worldwide.
ESS devices are capable of storing electricity for later use.
They are regarded as an essential part of renewable energy facilities that can supply electricity when solar panels or wind turbines are incapable of generating electricity.
Following a fire accident caused by an ESS in 2017, however, concerns have spread that the devices may be dangerous.
The Ministry of Trade, Industry and Energy and a joint investigation committee from both the private and public sectors pointed out that a lack of battery protection systems, poor management, inattention during installation, and a lack of a comprehensive management system caused the fire accident.
The HRI argued that fire accidents involving ESS have continued since, adding to the concerns already rampant throughout the country.
Investors began questioning the safety of the ESS industry, further slowing down the market.
SNE Research reported that despite the 37.9 percent growth in the global ESS market in 2019, the South Korean ESS market is expected to shrink by 33.9 percent.
H. M. Kang (email@example.com)