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.
|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.