From the outset, one of the major challenges for the smart energy sector has been storing large amounts of power within the power grid.
Fortunately, some recent technological advances have led to the introduction of promising energy storage capabilities.
In response, grid scale energy storage—a mechanism of storing electricity during the off-peak period and supplying the stored electricity during the on-peak period—is expected to boom from 2015-2019, with a CAGR of 35.5 percent.
TechNavio analysts have taken a look at the four main drivers expected to impact growth in the Global Grid Scale Energy Storage System Market.
Ability to Save Power for Peak Demand
A grid storage system helps save the electricity generated during off-peak times so it can be supplied when demand for electricity is high, thereby removing the time lag between energy generation and consumption.
Increase in Demand for Uninterrupted Power Supply and Need to Reduce Blackouts
Installation of grid-scale energy storage systems can reduce power intermittence by providing stored electricity during power shortages, which will help meet rising global demand for power.
Smart grid technologies can also help to greatly reduce the frequency of blackouts by maintaining a reliable backup power source.
Construction of Electric Vehicle Infrastructure
Solar-powered electric vehicles generate electricity for their own use. But the fun part is that any surplus electricity generated by these cars can be transmitted to the power grid, to be stored for future use. As more countries encourage the development of electric vehicle infrastructure, the scope of the grid-scale energy storage market is also expected to grow.
Increase in Government Support for Smart Grid Industry
Since 2009, governments worldwide have been implementing policies to support the smart grid industry.
The North American Electric Reliability and Critical Infrastructure Protection guidelines will help enable growth in this sector, and local smart grid initiatives such as the Ontario Smart Grid Fund in Canada will help to bolster support for these developing technologies.
Grid Scale Energy Storage Technology Breakdown
The evolution of the underlying storage technology is obviously key to market growth in this segment. R&D dollars are primarily being spent on developing three main technologies—pumped hydro, advanced batteries and flywheel energy storage.
Pumped Hydro
A pumped hydro energy storage system can supply power for a long time, and is the only power storage technology with high potential for bulk power management applications.
It is economically viable for providing peak power for thermal and nuclear systems and is the only flexible way of storing a large amount of energy for future use.
Advanced Batteries
Advanced batteries are the fastest growing energy storage technology. The main reason for its growth is the flexibility in the use and connection of intermittent renewable energy generators with the main grid.
Lithium ion batteries are expected to account for the maximum share and will play an important role in future energy storage systems.
Flywheel
Flywheel technology is primarily associated with short-term power applications like power conditioning, and for peak power backup solutions for short durations.
Because of their ability to charge and discharge rapidly, flywheels are more suitable for reducing power fluctuation in grid-scale energy storage.
Innovations in technology combined with government and consumer compliance are all positive steps taken worldwide to boost the growth of the Global Smart Grid industry, which will in turn increase the growth of the Global Grid-scale Energy Storage System market through the projected period.
