Renewables integration driving ESS into the multi billions
October 22, 2013 | By
Barbara Vergetis Lundin
In 2012 alone, global markets installed 51,000 MW of wind and solar photovoltaic power generation capacity. While some variable generation markets may slow or stall, there is no doubt that wind and solar markets will continue to expand over the next 10 years, according to Navigant Research. That growth will require grid operators to adapt to unprecedented levels of variable generation on their systems -- in part, through the increased use of energy storage systems (ESS). In fact, the worldwide market for ESSes for wind and solar power integration will grow from less than $150 million annually in 2013 to $10.3 billion by 2023, according to Navigant. "Although market and industry issues have restrained growth to date, energy storage for wind and solar offers a compelling business case," said Anissa Dehamna, senior research analyst, Navigant Research. "This is especially true at the residential level, where electricity rates are typically more expensive on a per kilowatt-hour basis than in commercial and industrial settings." ESSes are one of several technologies that can be used to integrate variable generation. Demand response and natural gas are two primary alternatives, and both offer their own advantages. Demand response requires much less capital investment than energy storage systems, according to the report, and natural gas is well-understood and presents relatively little technology risk. However, energy storage systems have ore technical flexibility than either demand response or natural gas. For more:
© 2013 FierceMarkets. All rights reserved. http://www.fierceenergy.com http://www.fierceenergy.com/story/renewables-integration-driving-ess-multi-billions/2013-10-22 |