Transformation of Global Electric Industry Depends on Energy Storage
In the concluding chapter for the World Energy Council’s World Energy Resources 2016 report released today at the 23rd annual World Energy Council Congress in Istanbul, DNV GL asserts that energy storage is playing an increasingly crucial role in the transformation to a cleaner, smarter, safer energy future worldwide. Lead author Paul Gardner, global segment leader of energy storage at DNV GL, will present the chapter’s content Mondayand Wednesday at the Congress.
The chapter examines technical, financial, environmental and regulatory aspects of a variety of energy storage technologies including lithium-ion and flow batteries. It looks at the impact of increasing amounts of battery storage, and battery capacity in electric vehicles. Graphs depict storage technologies according to performance characteristics, using energy capacity and discharge time at rated power. Information gathered directly by PwC shows the levelised cost of storage in 2015 compared to the cost of 2030 in a bar graph, showing a projected decrease in future prices. The chapter develops three major conclusions:
The main areas of growth in the next five years are likely to be in small-scale battery storage in conjunction with solar PV; in utility-scale electricity storage; in electric vehicles; in commercial, communications and software capabilities to allow DER to be aggregated, in a ‘virtual power plant’ or ‘swarm’; in pumped storage hydro; and in islanded use cases integrating renewables.
Most commercial interest is in battery storage and the costs of several storage technologies will fall as production volumes increase.
The future outlook for energy storage markets is good due to an increasing need, but the regulatory and legal frameworks are failing to keep pace.
According to the World Energy Council, the investment community has good reason to be excited about the innovation and business models that will emerge from new opportunities. With the cost of capturing and storing wind and solar energy coming down, its deployment across the world will increase.
The World Energy Council is the principal impartial network of leaders and practitioners promoting an affordable, stable and environmentally sensitive energy system for the greatest benefit of all.