About Grid Scale Energy Storage
A grid-scale energy storage system stores power when there is excess and releases energy when there is demand such as during power outage. The increased use of intermittent renewable energy sources has resulted in the use of energy storage systems. Electricity storage primarily fills the gap between the ramping down/ ramping up time of wind/ solar powered energy generation systems. The energy storage systems provide operational support to ensure a smooth, uninterrupted flow of electricity supply. They maintain the power quality and reliability with short response time. In addition, they also smoothen the energy output of renewable sources, which are intermittent in nature.
Technavio’s analysts forecast the global grid-scale energy storage market to grow at a CAGR of 34.8% during the period 2016-2020.
Covered in this report
The report covers the present scenario and the growth prospects of the global grid-scale energy storage market for 2016-2020. To calculate the market size, Technavio considers the revenue generated from the sales of grid-scale energy storage systems.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Grid Scale Energy Storage Market 2016-2020
Technavio recognizes the following companies as the key players in the global grid scale energy storage market: ABB, Beacon Power, Hydrostor, and LG Chem.
Other Prominent Vendors in the market are: EnerVault, GE, Samsung SDI, S&C Electric, and SustainX.
Commenting on the report, an analyst from Technavio’s team said: “High demand for consistent and secure power will be a key trend for market growth. The rise in population and urbanization have resulted in an increased demand for energy. This demand is attributed to demand-supply deficit, which has led to power outage issues worldwide. One of the reasons for power outage is the substantial loss during T&D. The use of energy storage technologies reduces electricity loss, thereby improving the overall efficiency of power generation. We note that energy storage technologies make T&D more flexible, enhance the grid’s ability to meet peak demand, and also improve the overall system efficiency.”
According to the report, one of the key drivers for market growth will be the government support. Government plays an important role in determining the rate of energy storage and energy usage. Countries such as Japan, the US, India, and South Korea support the use of renewable sources of energy and therefore are providing diverse incentives and financing options. With growth in the use of renewable sources, the need for energy storage is on the rise. The government regulatory requirements such as frequency regulation, capacity payment mechanisms that reward the best backup technologies, and achieving mandatory targets are also contributing to market growth.
Further, the report states that one of the challenges for the market will be the technological risks involved. The energy storage system must be carefully chosen by taking into consideration factors such as cycle efficiency, cycle life, self-discharge rate, and power and energy density. The system has to be selected based on the required application. For instance, in places such as India and Africa, where power outages can last for more than expected, the storage systems with low discharge rates are ideal. In addition, the excessive rise in temperature could cause these batteries to degrade or shorten their life cycles. The optimal operating temperature of a lithium-ion battery is 10°C-50°C. In some cases, these batteries are known to overheat or catch fire due to thermal instability. Such instances increase the technological risk and affect the growth of the market.
ABB, Beacon Power, Hydrostor, LG Chem, EnerVault, GE, Samsung SDI, S&C Electric, SustainX.