Installing utility-scale, grid-connected battery storage.
William Atkinson is a freelance writer whose work has appeared frequently in Public Utilities Fortnightly.
In a report published in July 2015, Frost & Sullivan predicts great things for utility-scale energy storage. "This market is expanding rapidly," the report states, "driven by impressive technological breakthroughs and growth in manufacturing capabilities." The report cites a "rising profile" that has "caught the attention of governments, which are now rolling out favorable policy initiatives, such as subsidies, [and] preferential tariffs." (See, Global Utility-scale, Grid-connected Battery Energy Storage Systems Market, July 21, 2015.)
The market saw worldwide revenues of almost half a billion dollars in 2014 and is expected to earn almost eight-and-a-half billion by 2024. Approximately 430 megawatts of battery energy storage systems are currently in operation, while estimates suggest 10 to 12 gigawatts by 2024. The U.S. is expected to lead the way, followed by China, Japan, and Germany.
"Battery storage has the ability to impart flexibility to the grid across a variety of end-use applications," said Ross Bruton, energy and power research analyst for Frost & Sullivan, in a press release. As Burton explained further, the market's greatest advantages come from several different applications: 1) time shifting of energy usage, 2) the firming up of energy from distributed and variable renewable resources, and 3) ancillary services, such as the rapid and short-term balancing of electricity supply.