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Forecast Shows Lithium-Ion Batteries Taking Lead in Utility-Scale Energy Storage By SGN Staff Oct 21, 2009 - 2:24:07 PM
A comprehensive Pike Research forecast says lithium-ion battery technology will become the fastest-growing segment for utility-scale stationary energy storage, and that it will grow to become a $1.1 billion business worldwide by 2018.
Utility-scale energy storage has been an elusive holy grail that utilities and Smart Grid technology companies have long been searching for. The ability to store energy for later use, even briefly, is critical to the success of integrating solar and wind energy sources into the electricity supply because it would solve a major problem that those sources present: variable and intermittent periods of energy production that typically don't correspond to periods of peak demand.
Wind and solar are key components of national policy to create a Smart Grid with clean and reliable energy.
Pike Research, a market research and consulting firm that analyzes global cleantech markets, studied 11 competing energy storage technologies before identifying lithium-ion batteries as the most likely leader.
"Utilities will be the downstream beneficiaries of innovation and investment in lithium- ion batteries for the transportation sector,” said senior analyst David Link. "While Li-ion was once limited to consumer electronics devices, it is quickly becoming the battery of choice for electric vehicle manufacturers. Improved storage capacity and economics will lead the utility sector to adopt Li-ion as well—we anticipate that 2011 will be the inflection point for growth in this category."
Revenues from lithium-ion batteries, according to the forecast, are expected to represent 26% of the $4.1 billion global stationary energy storage business by 2018.
The Pike forecast analyzed global energy storage market opportunities from a variety of key perspectives, including a detailed look at the strengths, weaknesses, technological capabilities and the economics of several storage technologies—and an assessment of the market prospects for each of them. In addition, it analyzes the market drivers, barriers and regulatory/legislative issues that affect energy storage markets. It also includes granular market forecasts that are segmented by technology and region, and profiles of key participants in the energy storage market.
The forecast also addresses other important technologies, including advanced batteries such as sodium sulfur (NAS), pumped hydropower and compressed air energy storage (CAES).
Pike Research news release
Executive summary of forecast
Smart Grid storage resources on SGN
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