BOULDER, Colo.--(BUSINESS WIRE)--The stationary energy storage sector will play an increasingly larger role in the electricity grid of the future. Demand is being driven by several key trends including the proliferation of renewable energy from variable sources such as wind and solar, the expansion of utility smart grid initiatives, and the introduction of plug-in hybrid and electric vehicles. According to a new report from Pike Research, worldwide installed system revenues will grow at a strong pace in the coming decade, increasing from $1.5 billion in 2010 to $35.3 billion annually by 2020.
“Energy storage on the grid addresses several pressing market needs,” says senior analyst David Link. “Today, applications for energy storage include load following, renewable energy grid integration, and renewable energy time shifting. In the coming years, the number of applications for energy storage on the grid will expand to include the opportunity for utilities to defer transmission and distribution (T&D) capital upgrades, time of use energy cost management for the commercial and industrial (C&I) segments, and conventional energy time shifting.”
Link adds that several key technologies are emerging to address the need for long-duration energy storage. Traditional options include pumped hydroelectric storage, compressed air energy storage (CAES), and sodium sulfur (NAS) batteries. Other more nascent energy storage technologies are lithium ion (Li-ion) batteries and flow batteries. While there is room for a variety of technologies, Pike Research forecasts the most significant growth opportunities for CAES, Li-ion batteries, and flow batteries.
Pike Research’s report, “Energy Storage on the Grid”, provides a detailed examination of the applications that will drive energy storage adoption between now and 2020, as well as the technologies that will enable them. It examines the business models, policy and regulatory factors, technology issues, and underlying economics that will define the rapidly expanding energy storage market. The report includes profiles and SWOT analysis for 30 key industry players, as well as global market forecasts, segmented by world region and technology, for the period from 2010 to 2020. An Executive Summary of the report is available for free download on the firm’s website.
Pike Research is a market research and consulting firm that provides in-depth analysis of global clean technology markets. The company’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, Clean Transportation, Clean Industry, and Building Efficiency sectors. For more information, visit www.pikeresearch.com or call +1.303.997.4619.