Greentech Lead U.S: By 2022, 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, according to Pike
Research.
Advanced batteries can help utilities, grid operators,
and service providers enhance grid flexibility, integrate carbon-free (and
often intermittent) generation resources, and accommodate growing electricity
demand. However, these benefits come at a high cost–one that is often
difficult to justify in a period of abundant natural gas and smart grid
advances, the report said.
Despite the higher cost factor, the market for advanced
batteries will roughly double each year over the next five years, and continue
growing steadily beyond that.
“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,” said
research analyst Brittany Gibson.
“But advanced batteries are not the only assets that can
provide these services,” Gibson added. “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.”
Each battery 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.