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Energy Storage Technologies in Utility Markets Worldwide

Energy storage systems provide the ability to balance power demand and supply, reduce electric surges and sags, maintain power frequency, and ensure power remains available for critical loads when power outages occur. They can also provide enough power to maintain operations until systems can be shut down in an orderly fashion or provide enough power until other on-site generation sources come on-line. Energy storage solutions additionally afford several strategic benefits such as improved flexibility for grid operators, increased national energy security, and reduced environmental impact.

The financial benefits of energy storage within the generation, transmission, and distribution system are numerous. With the incorporation of energy storage into the grid, the utility sector and customers can expect reduced financial losses due to outages and poor power quality. Energy storage solutions can improve the efficiency of, and thus reduce the costs associated with, load following, frequency regulation and provision of reserves. They can also improve the return on renewable energy generation investments, enable profitable power market arbitrage, enable the deferral of electric infrastructure investments, and reduce end-user electricity costs.

Current and future demand for high quality, reliable electricity exceeds the supply capabilities of current infrastructure. Energy storage solutions can help to maximize the capacity of current infrastructure while improving power quality and reliability. Demand for energy storage solutions is expected to further benefit from the growing trends in the adoption of renewable energy generation and microgrid solutions. The significant public and private investments currently being made are also expected to bolster the growth of energy storage solutions in the utility sector. However, a number of challenges remain, including the need to further improve the cost/performance of current technologies, the relative lack of technical and commercial maturity of many energy storage solutions, and regulatory and monetization issues.

With electric grids around the world struggling to meet the rising demand for more and higher quality power in a cost effective and environmentally conscious manner, utilities and other service providers responsible for reliable electricity service are continuing to identify and evaluate a range of technically and economically viable solutions. Energy storage technologies including CAES, pumped hydro, batteries and capacitors which offer solutions to many of the common problems and emerging needs of the industry have been successfully tested and deployed. Energy storage technologies can offer benefits such as prompt start-up, modularity, easy siting, limited environmental impact, and flexibility to be used for multiple applications.

Ongoing growth in renewable generation, the emergence of microgrids, substantial public and private investments, and continued R&D that improves the cost/performance of energy storage technologies are expected to drive even stronger growth over the next several years. The global market for energy storage solutions in the utility sector is expected to grow by 15.8% per year to over $10 billion in 2015. Meanwhile, the value of energy storage solutions in the United States is forecast to increase 26.6% per year to nearly $2 billion in 2015.

Report Methodology

The information in Energy Storage Technologies in Utility Markets Worldwide is based on primary and secondary research. Primary research entailed interviews with firms involved in the manufacture, distribution and sales of ICT products, analysts and consultants to the energy industry to obtain insight into the products, technologies and market factors shaping the industry. Secondary research entailed data gathering from relevant sources, including government and industry publications, company literature and corporate annual reports.

What You’ll Get in This Report

Energy Storage Technologies in Utility Markets Worldwide contains important insights and projections regarding the future of this market around the world. The report provides both the comprehensive analysis and data. Subscribers will benefit from extensive data, presented in easy-to-read and practical charts, tables and graphs.

Energy Storage Technologies in Utility Markets Worldwide includes a broad review of the market for energy storage technologies applied in the global utility sector. The report examines opportunities for energy storage systems to beneficially impact the generation, distribution, and transmission of electricity. Front-running energy storage technologies for such applications are discussed. Specific applications in the utility sector and their benefits to value chain participants, including end-users, are highlighted. The report also quantifies the historic, current, and projected market size for various energy storage technologies in the utility sector. Profiles of key suppliers of energy storage technologies are also included.

How You’ll Benefit from This Report

If your company is already doing business related to energy storage solutions, or is engaged in activities pertaining to the electric grid and its operations, you will find this report invaluable. Further, companies engaged in the market for renewable source generation, smart grid, and microgrid or community power solutions will also benefit from this report. It provides a comprehensive package of information and insight not offered in any other single source. You will gain a thorough understanding of the current global market for energy storage solutions and their applications and benefits to utility sector value-chain participants, as well as the projected market size and trends for incumbent and emerging energy storage technologies through 2015.

This report will help:

  • Marketing managers understand the market forces shaping the market for energy storage technologies which are commercially viable for utility sector applications and identify market opportunities.
  • Research and development professionals stay on top of competitor initiatives and explore demand for energy storage technologies.
  • Business development executives understand the dynamics of the market and identify possible partnerships.
  • Information and research center librarians provide market researchers, product managers, and other colleagues with the vital information they need to do their jobs more effectively.


Market Insights: A Selection From The Report


Regulatory and Monetization Issues

To a large degree, energy storage lacks the regulatory structure and history which have made other components of the electric grid successful. For example, in the United States only a few regulations address energy storage and without specific regulations utilities will likely remain uncertain about how energy storage investments will be treated, how the costs for these systems will be recovered, and how energy storage will be permitted to operate in a regulated environment. Furthermore, there is no overarching strategy delineating how energy storage can or should be incorporated into the grid.

To complicate matters further, energy storage systems can concurrently address multiple applications across generation, transmission, distribution, and end use. For example, an energy storage solution installed in an industrial park to provide...

Electricity Storage Benefits

Energy storage systems provide the ability to balance power needs, reduce electric surges and spikes, maintain power frequency, and ensure power remains available for critical loads when power outages occur. They can also provide enough power to maintain operations until systems can be shut down in an orderly fashion or provide enough power until other on-site generation sources come on-line. With the incorporation of energy storage into the grid, the utility sector and customers can expect reduced financial losses due to outages and poor power quality.

Energy storage technologies can also help reduce the costs associated with building new electric infrastructure, whether in the form of generating facilities, transmission lines, or substation improvements. Costs for such improvements can be delayed in many cases, reduced in others, and sometimes completely eliminated.

Corporate Background

In 2003, Axion Power was founded to acquire and develop lead-acid based battery technology. Axion has developed a lead acid carbon battery-supercapacitor hybrid energy storage device called a PbC® that combines the basic chemistry of lead-acid batteries with the fast recharge rate and longer cycle life of supercapacitors. To date, the majority of the company’s activities have focused on research and development, prototyping and testing and since its inception, financing for operations has been derived from investors. The company currently generates revenues from the sale of conventional lead-acid batteries. The company plans to develop In the News

Utility-Scale Energy Storage Challenges FERC

New York, August 25, 2010 - Energy storage (ES) technologies offer numerous financial benefits within electrical generation, transmission, and distribution systems. With the incorporation of energy storage into the grid, the utility sector and customers can expect reduced financial losses due to outages and poor power quality. Energy storage solutions can improve the efficiency of, and thus reduce the costs associated with, load following, frequency regulation and provision of reserves. They can also improve the return on renewable energy generation investments, enable profitable power market arbitrage, enable the deferral of electric infrastructure investments, and reduce end-user electricity costs.

Established energy services pricing, however, is at odds with ES capabilities to provide all three services—generation, transmission and distribution. FERC, the Federal Energy Regulatory Commission, is responsible for policy development and rate rulings. Concern that ES may ‘double-dip’ recovery of infrastructure costs by utilities is being weighed.

Energy Storage Technologies in Utility Markets Worldwide, a new market research report just released by SBI Energy, reviews the market for energy storage technologies applied in the global utility sector. The report examines opportunities for energy storage systems to beneficially impact the generation, distribution, and transmission of electricity. Front-running energy storage technologies for such applications are discussed. Specific applications in the utility sector and their benefits to value chain participants, including end-users, are highlighted. The report also quantifies the historic, current, and projected market size for various energy storage technologies in the utility sector. Profiles of key suppliers of energy storage technologies are also included.

Market history 2005-2009 and market forecast 2010-2014 support analysis of leveraging energy storage solutions within the utility sectors; review of the electric grid and its operations, identification of opportunities for energy storage solutions, and description of applications and potential benefits of energy storage to electricity generators, transmission and distribution operators, ancillary service providers, wholesale traders and end consumers.

Expert analysts Shannon Shuflat and Akash Shah present the major technologies that are either currently commercialized or in advanced stages of development such that they are likely to impact energy storage markets in the next five years. Technologies reviewed include: pumped hydro storage, compressed air energy storage, electrochemical capacitors (super/ultracapacitors), flywheels, and a host of batteries. Battery technologies discussed include lead-acid, lithium-ion, molten salt, and vanadium redox and zinc bromide flow batteries. SMES, or Superconducting magnetic energy storage, thermal storage and vehicle-to-grid as a potential storage solution are also presented.

About SBI Energy
SBI Energy, a division of MarketResearch.com, publishes research reports in the industrial, energy, building/construction, and automotive/transportation markets. SBI Energy also offers a full range of custom research services.

Additional Materials


Energy Storage Technologies in Utility Markets Worldwide Blog Entry

The energy storage market is benefitting from the convergence of several macro trends and is experiencing rapid growth. Nations around the world are actively investing in the expansion and upgrade of electric grids to meet current and future demand. Technologies such as distributed and renewable generation, microgrids, and smart grid technologies are further highlighting the necessity for and benefits of energy storage systems in the utility sector. Concurrently, significant investments are being made to improve the cost/performance and commercial viability of constituent technologies. The market for several energy storage technologies is expected to experience dramatic growth over the next several years.

Role of Energy Storage in Renewables Integration

Globally, the percentage of electricity generated through the use of renewables is expected to increase from 17% in 2007 to over 23% by 2035. The share of renewable power generation in the US is also expected to rise over the period. Much of the electricity produced from these renewable sources will be generated by non-utilities and even individuals. Furthermore, the power generated from renewable energy sources is highly variable and subject to intermittent operation due to the inherent vagaries of sources such as wind and solar. Thus, energy storage solutions are necessary to maximize the generation of electricity from these sources and to transmit it to where it is needed, when it is needed.

Due to these factors, it is estimated that only about 15% of US power needs can be supplied by renewable energy sources unless the electricity produced from these sources can be stored for later use. It has also been estimated that more than $340 billion will need to be invested in power storage capabilities to raise the supply of power from renewable sources by just another 5 percentage points from 15% to 20%. As adoption of wind and other intermittent and variable renewable energy generation increases in nations around the world and exceeds the 15% of total electricity generation threshold, the use of energy storage solutions will become a pre-requisite to further integration of renewable energy.

Energy Storage in Microgrids

Maintaining, expanding and upgrading the electric grids to meet the growing demand for electricity is expected to cost trillions of dollars over the next twenty years. This assumes, of course, that the manner in which electricity is produced and delivered will remain basically the same as it has for over one hundred years, i.e. large centralized generation in remote areas, connected to distant population centers through hundreds of miles of transmission and distribution infrastructure. An alternative solution gaining traction is the microgrid.

Microgrids function in a manner similar to the large electric grid but on a much smaller and localized scale. Microgrids are electric grids for small areas or even single buildings. Given their emerging nature, and the fact that microgrids are often custom designed for specific end-user requirements, several varying definitions and implementations exist. There is, however, growing agreement that microgrids must minimally incorporate distributed generation and energy storage solutions that are proximal to the point-of-use. While most microgrids are expected remain connected to the larger grid, they are also designed to be self-sufficient and thus capable of disconnecting or “islanding”.

The ability of microgrids to incorporate distributed renewable energy generation and to avoid the cost and poor reliability of long distance transmission infrastructure is a significant driver of microgrid adoption. Since most microgrids leverage storage as an essential component, growth in microgrids is also expected to drive further growth in energy storage systems, and vice versa.

 

  • Executive Summary
    • Introduction
    • The Grid and Energy Storage
    • Applications of Energy Storage Solutions
      • Table Functional Categorization of Utility Energy Storage Applications
    • Energy Storage Technologies
      • Pumped Hydro Storage
      • Compressed Air Energy Storage
      • Electrochemical Capacitors
      • Flywheels
      • Batteries
      • Lead-Acid Batteries
      • Lithium-Ion Batteries
      • Molten Salt Batteries
      • Flow Batteries
      • Other Technologies and Solutions
    • Drivers of Demand for Energy Storage Systems
    • Limiting Factors
    • Current and Projected Market Size
    • Energy Storage Developers/Suppliers
      • Table Energy Storage Technology Developers/Suppliers by Technology
    • Report Scope
    • Report Format
    • Report Methodology
    • Abbreviations and Definitions
      • Table Abbreviations Utilized in Report
  • Utility Sector Energy Storage Applications
    • Introduction
    • The Electric Grid
      • Power Generation
      • Power Transmission
      • Power Distribution
      • Grid Operations
      • Microgrids
    • The Grid and Energy Storage
      • Applications of Energy Storage Solutions
        • Table Functional Categorization of Utility Energy Storage Applications
      • Generation and Supply Applications
        • Table Energy Storage Requirements for Black Start Applications
        • Table Energy Storage Requirements for Spinning Reserve Applications
        • Table Energy Storage Requirements for Load Following Applications
        • Table Energy Storage Requirements for Regulation Control Applications
        • Table Energy Storage Requirements for Load Shifting Applications
        • Table Energy Storage Requirements for Renewables Integration Applications
      • Transmission and Distribution Applications
        • Table Energy Storage Requirements for Angular Stability Applications
        • Table Energy Storage Requirements for Voltage Stability Applications
        • Table Energy Storage Requirements for Frequency Excursion Suppression Applications
        • Table Energy Storage Requirements for Distribution Power Quality Applications
    • Energy Storage System Requirements by Application
      • Table Energy Storage Requirements by Application
    • Energy Storage Technologies by Application
      • Table Energy Storage Technologies by Application
  • Energy Storage Technologies
    • Introduction
    • Pumped Hydro Storage
      • Table Technology Developers/Suppliers, Pumped Hydro Storage
    • Compressed Air Energy Storage
      • Table Technology Developers/Suppliers, Compressed Air Energy Storage
    • Electrochemical Capacitors
      • Table Technology Developers/Suppliers, Electrochemical Capacitors
    • Flywheels
      • Table Technology Developers/Suppliers, Flywheels
    • Batteries
      • Lead-Acid Batteries
        • Table Technology Developers/Suppliers, Lead-Acid Batteries
      • Lithium-Ion Batteries
        • Table Technology Developers/Suppliers, Lithium-Ion Batteries
      • Molten Salt Batteries
        • Table Technology Developers/Suppliers, Molten Salt Batteries
      • Vanadium Redox Flow Batteries
        • Table Technology Developers/Suppliers, Vanadium Redox Flow Batteries
      • Zinc-Bromine Batteries
        • Table Technology Developers/Suppliers, Zinc Bromine Batteries
    • Other Emerging Technologies and Solutions
      • Superconducting Magnetic Energy Storage
      • Thermal Storage
      • Vehicle to Grid
    • Conclusion
  • Demand Factors and Market Size
    • Introduction
    • Demand Drivers
      • Growing Electricity Demand
      • Electric Power Supply Constraints
      • Rising Grid Investment Needs
      • Rising Electricity Rates
      • Growing Renewable Generation
      • Emergence of Microgrids
      • Public and Private Funding
    • Limiting Factors
      • Cost Competitiveness
        • Table Energy Storage Cost Comparison
      • Supply Constraints
      • Regulatory and Monetization Issues
      • Commercial Maturity
    • Current and Projected Market Size
      • Pumped Hydro
        • Table Recent and Planned PHS Projects
      • CAES
        • Table CAES Facilities Planned for Completion 2010-2015
      • Batteries and Capacitors
      • Flywheels and Other Systems
    • Electricity Storage Benefits
      • Utility Generation/Supply Benefits
      • Utility Transmission and Distribution Benefits
      • Utility Customer Benefits
  • Participant Profiles
    • Overview
      • Table Description of Companies Profiled
    • Altair Nanotechnologies, Incorporated
      • Table Altair Nanotechnologies, Incorporated Profile
      • Corporate Background
      • Product Portfolio
        • Table Altair Nanotechnologies, Inc. Product and Brand Portfolio, Lithium Ion Batteries
      • Performance
      • Innovation
      • Personnel Changes
    • Alstom Power
      • Table Alstom Power Profile
      • Corporate Background
      • Product Portfolio
        • Table Alstom Power Product Portfolio, Pumped Hydro
      • Performance
      • Acquisitions and Divestitures
      • Innovation
      • Personnel Changes
    • Axion Power International, Incorporated
      • Table Axion Power International, Incorporated Profile
      • Corporate Background
      • Product Portfolio
      • Performance
      • Innovation
      • Personnel Changes
    • Beacon Power Corporation
      • Table Beacon Power Corporation Profile
      • Corporate Background
      • Product Portfolio
      • Performance
      • Innovation
      • Personnel Changes
    • Dresser-Rand
      • Table Dresser-Rand Profile
      • Corporate Background
      • Product Portfolio
        • Table Dresser-Rand Product and Brand Portfolio, CAES Equipment
      • Performance
      • Acquisitions and Divestitures
      • Innovation
      • Personnel Changes
    • GE Energy
      • Table GE Energy Profile
      • Corporate Background
      • Product Portfolio
        • Table GE Energy Product and Brand Portfolio, CAES Equipment
      • Performance
        • Table GE Energy Operating Segment Associated Business Units
      • Acquisitions and Divestitures
      • Innovation
      • Personnel Changes
    • GEMx Technologies, LLC
      • Table GEMx Technologies, LLC Profile
      • Corporate Background
      • Product Portfolio
        • Table GEMx Technologies, LLC Product and Brand Portfolio, Sodium Metal Halide Batteries
      • Performance
      • Acquisitions and Divestitures
      • Innovation
    • Maxwell Technologies, Incorporated
      • Table Maxwell Technologies, Incorporated Profile
      • Corporate Background
      • Product Portfolio
        • Table Maxwell Technologies, Inc. Product and Brand Portfolio, Electrochemical Capacitors
      • Performance
      • Acquisitions and Divestitures
      • Innovation
      • Personnel Changes
    • Prudent Energy, Incorporated
      • Table Prudent Energy, Incorporated Profile
      • Corporate Background
      • Product Portfolio
      • Performance
      • Acquisitions and Divestitures
      • Innovation
      • Personnel Changes
    • ZBB Energy Corporation
      • Table ZBB Energy Corporation Profile
      • Corporate Background
      • Product Portfolio
      • Performance
      • Innovation
      • Personnel Changes
  • Selected Corporate Addresses

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