The global market for energy storage is on the rise, driven by the growing demand for renewable energy. Battery energy storage systems (BESS) play a crucial role in managing the power grid, providing resilience, reliability, and ancillary services.
FREMONT, CA: The global market of energy storage is growing increasingly, aligning itself with the rising demand and employment of renewable energy facilities. Battery energy storage systems (BESS) retain energy from wind farms, solar arrays, and more, and subsequently aid in the management of the power grid. It offers higher levels of resiliency and reliability, alongside ancillary services.
Industry analysts have coined the phrase ‘Energy Storage Decade’ and other individuals in the industry have matched that billing, despite disruptions caused by the pandemic and the supply chain issues brought with it.
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Energy storage, whether it's from batteries, thermal systems, pumped hydropower, or other technology, is taking advantage of the approach toward the electrification of transportation, alongside the focus on electrification of the industrial, commercial, and residential sectors.
The Arrival of New Battery Technology
New battery technologies are being implemented for safety and economic reasons, and companies are aware that alternatives to lithium-ion are necessary to supply the increasing demand for energy storage. Stationary storage capacity is predicted for 1.2 TWh by the year 2023 and is extrapolated to 9TWh by 2050. To meet these high standards, different types of sustainable and scalable batteries are being developed.
Operators and building owners alike are rejecting the deployment of lithium-ion batteries because of rising costs, irregular availability, and safety concerns. Instead of using lithium, data centres, hotels, and other commercial buildings are using a new generation of alternative storage solutions that are non-toxic as well as non-flammable.
As new thermal energy storage technologies develop, commercial buildings will use cheaper, cleaner, and more reliable ways to provide power to their cooling systems, which can factor in up to half their energy use.
Sustainability and the Role of Decarbonisation
There lies a skyrocketing demand for energy storage technologies, as they are being incorporated into decarbonisation and sustainability programs. It is also being used to back the grid integration of more renewable energy sources.
Presently, the rising demand for energy storage is being driven by increased energy prices and state decarbonisation mandates. This increased market demand for grid-storage capacity speaks to the growth of the industry, which is also dependent on the availability of transmission and grid access at the right times.