Energy storage market will climb, but challenges remain
By: SGN Staff
The annual value of energy storage on the grid (ESG) will pass the $30 billion mark by 2022, according to a new report from Pike Research, Energy Storage on the Grid. The cleantech research firm points to quickly changing energy mixes and more volatile load profiles that grid operators will need to grapple with if they're to provide reliable, secure electricity - and those changes in the energy environment are expected to drive operators toward ESG through the next decade.
The specific energy storage technologies addressed in the report include next-generation pumped storage, compressed air storage and a variety of advanced batteries. The report says those technologies have increased the available options for ESG and that new applications are increasing too.
But none of that means the storage industry can sit back and watch the orders roll in. "One of key challenges for energy storage will be to deliver cost-effective solutions for these grid stability issues," said research analyst Anissa Dehamma. "Market structures still must catch up with the market to acknowledge the value of energy storage to grid operators and power consumers. At the same time, the industry must solve issues around business models and the supply chain in order to successfully scale up and fully commercialize these emerging technologies."
The report also found that a business model shift in the ESG market is more specialization: a large number of recent strategy decisions and partnerships indicate a narrow market focus by technology vendors. Rather than concentrate on a lot of different markets and countries, more vendors are zeroing in on one or two markets or applications and are now changing their positions in the storage supply chain.
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