The ability to capture and store energy for later use is an elusive goal that utilities and other companies in the power generation business have long pursued. Energy storage will be especially important in compensating for the intermittent nature of wind and solar energy sources, which is often out of synch with the peaks and valleys of customers’ electricity demand.
Of the 11 competing energy storage technologies analyzed in a recent report from Pike Research, the cleantech industry analyst firm forecasts that Lithium Ion (Li-ion) batteries will be the fastest growing category for utility-scale applications, growing to a $1.1 billion worldwide business by 2018.
“Utilities will be the downstream beneficiaries of innovation and investment in Lithium Ion batteries for the transportation sector,” says 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.”
Pike Research forecasts that revenue from Lithium Ion batteries will represent 26% of the $4.1 billion global stationary energy storage business by 2018. Important storage technologies also include other advanced batteries such as Sodium Sulfur (NAS), as well as kinetic storage techniques like Pumped Hydro and Compressed Air Energy Storage (CAES).
Pike Research’s study, “Energy Storage Technology Markets”, analyzes the opportunity for several key technology categories including advanced batteries, pumped hydro, compressed air, flow batteries, and frequency regulation for utility-scale applications.
An Executive Summary of the report is available for free download here:
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