A new report indicates that the global battery storage market for smart grid is set to grow at a CAGR of 73% between 2016 and 2020.Technology research and advisory company Technavio stated that the growth can in part, be attributed to an increasing population and urbanisation, resulting in an increase in power consumption.
The firm states that excess power consumption has led to power outages in many countries and heavy loads during peak hours. The report notes that one of the reasons for power outages is the significant loss of electricity during transmission and distribution from power plants. It adds that smart grid storage technologies have the ability to reduce losses and improve the efficiency of power plants. [Utility battery storage market to grow 18-fold]
[quote] Another key driver is the use of distributed energy resources to meet future electricity demands for residential and industrial customers, utilities and commercial customers. Energy storage technologies present the option of increasing flexibility to regulate supply and demand conditions.
Technavio goes onto explain that the three primary battery types to be used are li-ion batteries, lead-acid batteries and sodium sulfur batteries. Li-on batteries however, are expected to dominate the battery energy storage market for smart grid during the forecast period.
Li-on battery storage – greatest market share
Furthermore, Li-on batteries are projected to occupy more than 67% of the total market share by 2020. Li-ion batteries are being extensively used in battery energy storage for the smart grid as they can be produced within high capacities.
Commenting on some of the technical benefits of Li-on batteries, Technavio says that this battery type uses non-aqueous electrolytes, which offer high operating voltages in comparison to other batteries such as lead-acid batteries and sodium-sulfur batteries with aqueous electrolytes. Other benefits of these batteries include light weight and compact size, which will augment their adoption in the energy storage system.
Geographically, the Americas, Asia-Pacific and Europe, Middle East and Africa region is forecast to dominate the market over the next four years. [US$1.7bn raised in smart grid, battery and storage and efficiency sectors]
Last year, the Americas dominated the battery storage market for smart grid and accounted for around 60% of the total market share. Much of the region’s growth is a result of the increasing use of smart grids and the increasing need for energy storage for distributed systems.
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