New equipment for new energy

The outlook for Battery Energy Storage Solution (BESS)

and Electrolysers
Author: Neeraj Sanjay Mense, Consultant – Industrial Practice, Frost & Sullivan

Top Trends in 2023 Here we take a close look at two hardware factors
related to these megatrends: electrolyser production;
As per Frost & Sullivan’s recent analysis on Middle East and battery energy storage solutions. A global
Oulook for the Energy Sector, the year 2023 will be a viewpoint gives the larger context in which to
year of balance for energy. Conventional energy sources understand these factors in the Middle East and Africa.
(oil and gas) will maintain their prominence in the
GCC and the broader Middle East. Investments in new
sources of energy will increase, driven by commitments
made toward emissions reduction. We expect to Green hydrogen and the drive for
see an increased push by utilities, regulators and
associated entities toward decentralised infrastructure
electrolyser manufacturing
improvements. This would involve storage, EV
Inevitable demand
integration, and solutions that integrate solar energy
for cooling/heating/lighting. Utilities will need to
There has been a growing demand for alternative forms
look at new business models, as energy consumption
of energy storage that can be effectively employed
declines.
to integrate renewables in the global energy value
chain while targeting decarbonisation across multiple
Top 5 trends to watch in 2023
energy intensive end user segments. In the quest
to decarbonise the economy, one term consistently
1. Going decentralised - From buildings to utilities, the
garnering global attention has been “hydrogen,” which
focus will be on decentralised solutions.
can replace as much as 10% of the total final energy
2. Grid digitalisation and EV integration - Two of the
consumption by 2050.i Depending on the fuel source
largest investor countries in power in the GCC will
and the manufacturing process employed, different
see an increased investment in integrating electric
types of hydrogen vary in terms of their carbon
vehicle infrastructure into cities.
emissions, the most sustainable being “green hydrogen”
3. Hydrogen will create new value chains - New produced through renewable electricity.
business opportunities will emerge from
investments in hydrogen infrastructure.
4. Gas and solar continue to co-exist - Investments
will continue in building new solar capacity and
sustaining gas infrastructure.
5. Oil to maintain highs - Oil will stay at least 15%
above 5-year averages, though headwinds are
expected.

38 Middle East and Africa Outlook Report 2023