Energy Storage on the Grid

"Energy Distribution"

08/31/2010

Long Duration Energy Storage Systems: Compressed Air, Pumped Hydro, NAS Batteries, Flow Batteries, and Lithium Ion Batteries for Utility-Scale Storage


The stationary energy storage sector will play an increasingly larger role in the electricity grid of the future. Demand is being driven by several key trends including the proliferation of variable renewable energy, principally wind and solar energy, which by itself cannot provide reliable baseload power, as well as the expansion of utility smart grid initiatives and the introduction of plug-in hybrid and electric vehicles. Current primary applications for long-duration energy storage include load following, renewable energy grid integration, and renewable energy time shifting. Other emerging applications include the opportunity for utilities to defer transmission and distribution (T&D) capital upgrades, time of use energy cost management for the commercial and industrial (C&I) segments, and conventional energy time shifting.

Several key technologies are emerging to address the need for long-duration energy storage. Traditional options include compressed air energy storage (CAES) and pumped hydroelectric storage, both of which Pike Research anticipates will experience strong growth in the coming decade. Other more nascent energy storage technologies are lithium ion (Li-ion) batteries, flow batteries, and sodium sulfur (NAS) batteries. Of these, Pike Research forecasts significant opportunity for both Li-ion and flow batteries.