BOULDER, Colo.--(BUSINESS WIRE)--As power generation resources evolve and diversify, advanced batteries offer unique benefits: they can help utilities, grid operators, and service providers enhance grid flexibility, integrate carbon-free (and often intermittent) generation resources, and accommodate growing electricity demand. The benefits, however, come at a high cost—one that is often difficult to justify in a period of abundant natural gas and smart grid advances. Nevertheless, according to a recent report from Pike Research, a part of Navigant’s Energy Practice, the market for advanced batteries will roughly double each year over the next five years, and continue growing steadily beyond that. By 2022, the total worldwide capacity of advanced batteries for utility-scale energy storage will reach nearly 16,000 megawatts (MW) – an almost 200-fold increase from 2012 – the study concludes.
“The market opportunity for advanced batteries in the utility sector is inherently tied to two drivers: rising demand for electricity and the increasing penetration of variable renewable energy generation,” says research analyst Brittany Gibson. “But advanced batteries are not the only assets that can provide these services. Utilities and grid operators are not yet convinced that advanced batteries are the only path forward, but many do agree that the current resources will not be sufficient in the long term.”
No silver bullet technology exists for advanced batteries, as each technology brings tradeoffs between a variety of operating characteristics and cost, according to the report. For example, while lithium ion batteries offer safer chemistries and fast response times, flow batteries offer the opportunity to decouple power and energy features. As a result, different batteries may be better suited for different applications; but first, empirical data is necessary to confirm definitive selections.
The report, “Advanced Batteries for Utility-Scale Energy Storage Applications”, explores the market opportunity and business models for advanced batteries for utility-scale energy storage applications including grid asset optimization, T&D deferral, renewables integration, ancillary services, and arbitrage. The study includes an assessment of the technical characteristics of advanced battery technologies such as lithium ion, sodium sulfur, advanced lead-acid, sodium metal halide, and advanced flow batteries. Key industry players are profiled and global market forecasts for installed capacity and revenue are provided through 2022, segmented by application, technology, and region. An Executive Summary of the report is available for free download on the Pike Research website.
About Pike Research
Pike Research, which joined Navigant’s global Energy Practice on July 1, 2012, provides in-depth analysis of global clean technology markets. The team’s research methodology combines supply-side industry analysis, end-user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of the Smart Energy, Smart Grid, Smart Transportation, Smart Industry, and Smart Buildings sectors. Additional information about Pike Research can be found at www.navigant.com/pikeresearch.
Navigant (NYSE: NCI) is a specialized, global expert services firm dedicated to assisting clients in creating and protecting value in the face of critical business risks and opportunities. Through senior level engagement with clients, Navigant professionals combine technical expertise in Disputes and Investigations, Economics, Financial Advisory and Management Consulting, with business pragmatism in the highly regulated Construction, Energy, Financial Services and Healthcare industries to support clients in addressing their most critical business needs. More information about Navigant can be found at www.navigant.com.
* The information contained in this press release concerning the report, “Advanced Batteries for Utility-Scale Energy Storage Applications,” is a summary and reflects Pike Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Pike Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.