Global Advanced Energy Storage Market to Surpass USD 4 Billion by 2020, According to Technavio
According to the latest market study released by Technavio, the global advanced energy storage market will grow from USD 1.7 billion in 2015 to USD 4.1 billion by 2020, posting a CAGR of more than 18%.This research report titled ‘Global Advanced Energy Storage Market 2016-2020’, provides an in-depth analysis of the market in terms of revenue and emerging market trends. This market research report also includes up to date analysis and forecasts for various market segments and all geographical regions.
The report categorizes the global advanced energy storage market into five major technology segments, including thermal energy storage, batteries, compressed air, molten salt, and flywheels. Of these five segments the top three advanced energy storage technologies are:
Thermal energy storage (TES)
Market size and forecast of the global advanced thermal energy storage market
The global advanced thermal energy storage market had an installed capacity of 1,791.8 MW in 2015, and this will likely reach 3,253.3 MW by 2020, growing at a CAGR of more than 11%. Thermal energy storage is gaining importance as it helps mitigate the intermittent nature of solar PV. Most of the large-scale solar power plants operate at a utilization rate of 25% because they cannot generate power in the absence of sunlight. TES will help utilities enhance the utilization rate of power plants by 60%-75%.
“Thermal energy storage can be applied to nuclear power storage to achieve critical peak demand by achieving higher power outputs. It plays a crucial role in electricity storage through concentrated solar power plants wherein solar heat can be stored for electricity production in the absence of sunlight,” says Vishu Rai, a lead energy storage research analyst at Technavio.
Global advanced battery energy storage market
High costs, safety and security concerns, and low durability and efficiency restrict the use of batteries in conventional energy storage systems. However, rapid growth in investments to develop battery systems has enabled the production of advanced low-cost and energy-efficient batteries for grid storage and electric vehicles (EVs). These advances caused a surge in the use of Li-ion batteries for energy storage. Li-ion batteries are preferred for microgrids with renewable energy sources owing to their deep discharge life cycle, high energy, and power density. “High energy-to-weight ratios allow these batteries to store a large amount of energy in a small space. The use of remote off-grid storage, industrial peak shaving, and frequency regulation should also increase deployment of these batteries for energy storage,” elaborates Vishu.
Global compressed air energy storage (CAES) market
CAES is an advanced sustainable technology for energy storage. The following factors have stimulated the use of CAES for energy storage:
Increased demand for renewables: CAES can mitigate issues related to the unpredictability of wind energy generation by reducing the risk of wind curtailment, thereby minimizing the economic losses caused by renewable projects.
Reduced CO2 emissions: CAES can reduce CO2 emissions considerably, as compression and combustion are separate processes in this system. During energy generation, it produces only one-third of the CO2 emitted by a conventional fossil fuel plant. As CAES enhances renewable generation, it reduces reliance on thermal generation. This reduces CO2 emissions and increases the system’s overall efficiency.
Enhanced security of supply: CAES helps ensure the security of fuel and power supplies by supporting indigenous renewable energy and reducing reliance on thermal plants, allowing for high-level management of fossil fuel consumption.
Reduced costs: The ability of CAES to reduce CO2 emissions by supporting renewable energy generation lowers the cost of a power system.