Pike Forecasts Grid Stationary Energy Storage Market to Reach $35B by 2020; Significant Opportunity for CAES, Li-ion and Flow Batteries
31 August 2010
According to a new report from Pike Research, worldwide installed revenues for stationary energy storage systems for the electricity grid will grow at a strong pace in the coming decade, increasing from $1.5 billion in 2010 to $35.3 billion annually by 2020.
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| Worldwide installed revenue opportunity by energy storage on the grid (ESG) technology, 2010-2020. Source: Pike Research. Click to enlarge. |
Demand is being driven by several key trends including the proliferation of renewable energy from variable sources such as wind and solar, the expansion of utility smart grid initiatives, and the introduction of plug-in hybrid and electric vehicles, Pike says.
Energy storage on the grid addresses several pressing market needs. Today, applications for energy storage include load following, renewable energy grid integration, and renewable energy time shifting. In the coming years, the number of applications for energy storage on the grid will expand to include the opportunity for utilities to defer transmission and distribution (T&D) capital upgrades, time of use energy cost management for the commercial and industrial (C&I) segments, and conventional energy time shifting.
—David Link, Pike Research senior analyst
Traditional options for long-duration energy storage include pumped hydroelectric storage, compressed air energy storage (CAES), and sodium sulfur (NAS) batteries. Other more nascent energy storage technologies are lithium ion (Li-ion) batteries and flow batteries. While there is room for a variety of technologies, Pike Research forecasts the most significant growth opportunities for CAES, Li-ion batteries, and flow batteries.
Pike Research’s report, “Energy Storage on the Grid”, provides a detailed examination of the applications that will drive energy storage adoption between now and 2020, as well as the technologies that will enable them. It examines the business models, policy and regulatory factors, technology issues, and underlying economics that will define the rapidly expanding energy storage market. The report includes profiles and SWOT analysis for 30 key industry players, as well as global market forecasts, segmented by world region and technology, for the period from 2010 to 2020.
Energy storage for renewables will need to be huge if the percentage renewables of total is to increase.
I can see how it can be done for solar, where you have a daily cycle, you could generate the power during the day and release it during the night.
However, I do not see how it can be used for wind (except for load shaping) because the range of variability is so much larger; you can have weeks of low/practically no wind, which would far exceed the requirements for solar storage.
One way to do it would be to use wind to augment hyrdo, and make the hydro 30% more powerful.
You may end up with a mix of wind + storage + 100% backup from gas for when the wind doesn't blow.
As long as you do not have to pay the guys too much to hang around waiting for their gas turbines to be used, it does not matter so much.
Posted by: mahonj | 31 August 2010 at 08:49 AM
This is where distributed storage could come in. If I want to have UPS for my home and quick charge my EV, then I might have 4-8 kWh in the corner of my garage. Multiply that take 1 million homes and you have a good buffer.
Posted by: SJC | 31 August 2010 at 09:01 AM
This study also predicts growth in off-grid energy field. Not all storage need be linked to the grid. As the technology for grid storage applications grows - its use in the off-grid dynamic will also grow. So, the market for home solar and CHP with off grid storage will grow. We expect to see cost effective packages of 25-50kwh solar panels plus li-ion storage come to market over the next decade. This will make energy in the sunbelt near cost-free, after a shortening ROI period.
Likewise we expect to see NG powered SOFC-based CHP introduced by major manufacturers of residential power units. In distributed RPU systems, the grid provides the backup/UPS function. Taking just a third of the residential demand off-grid will obviate new power plant construction and provide JOBS for the alternative energy sector. Of course there is a national security benefit as well.
Posted by: Reel$$ | 31 August 2010 at 09:32 AM
With wind/hydro combo you could always make wind the primary power source and use your variable hydro as the back-up. This way, wind power would be used at 100% and Hydro (with its built-in storage = water reservoir) would supply extra power on demand. Hydro plants could be equipped with a few more turbines for peak loads. No new storage units would be required.
Domestic storage units are a very good idea and ideal for people with e-vehicles. DC to DC charges can me very quick (when required) and it is a great advantage to have your own (24h) back-up. The only problem is with the current high cost ($10K+ or so).
Posted by: HarveyD | 31 August 2010 at 09:40 AM
SOFC CHP units will have to come closer to the replacement cost for a furnace/water heater for people to be interested. They will have to be available from several makers and have a good record of performance and longevity. We could have make progress on all of this the last 10 years, but the free market was chasing hedge funds instead.
Posted by: SJC | 01 September 2010 at 10:07 AM
Right SJC. The costs of these units will have to come down. But we see it as a tangent to the EV revolution. Once we have firmly started down the alternate energy path - we will find a huge new need for "out of the box" energy solutions.
CHP is one such solution. Low cost SOFC heat and power will be the challenge. But there is progress underway.
http://www.huliq.com/10180/bloom-box-future-energy
Posted by: Reel$$ | 01 September 2010 at 01:25 PM
The DOE should be on CHP big time. When we save NG through efficiency, there is more available for fuel. This was the idea of the Pickens Plan, you have wind turbines that save NG. With M85 FFVs and CHP, you can do the same thing.
Posted by: SJC | 02 September 2010 at 09:53 AM