Energy storage could become a $35 billion business by 2020, bolstered by more wind and solar farms coming online as well as the roll out of plug-in hybrid and electric vehicles and the deployment of smart grid technology, according to a new report by Pike Research.
Currently the sale of energy storage technology generates $1.5 billion in annual revenues.
“Today, applications for energy storage include load following, renewable energy grid integration, and renewable energy time shifting,” says Pike Research analyst David Link. He adds: “In the coming years, the number of applications for energy storage on the grid will expand to 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.”
When it comes to green power, energy storage technology would store wind or solar-generated power and then pipe it back into the grid at peak times. However, there’s ongoing concern that solar or wind energy storage is still years away from ever being commercially viable.
Pike Research forecasts the most significant growth opportunities in the energy storage spectrum are Compressed Air Energy Storage batteries (CAES), as well as lithium-ion batteries and flow batteries.
By. Green Energy Reporter