• 20 mins Syrian Rebels Relinquish Control Of Major Gas Field
  • 1 hour Schlumberger Warns Of Moderating Investment In North America
  • 2 hours Oil Prices Set For Weekly Loss As Profit Taking Trumps Mideast Tensions
  • 3 hours Energy Regulators Look To Guard Grid From Cyberattacks
  • 5 hours Mexico Says OPEC Has Not Approached It For Deal Extension
  • 6 hours New Video Game Targets Oil Infrastructure
  • 8 hours Shell Restarts Bonny Light Exports
  • 9 hours Russia’s Rosneft To Take Majority In Kurdish Oil Pipeline
  • 15 hours Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 20 hours British Utility Companies Brace For Major Reforms
  • 1 day Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 1 day Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 1 day Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 1 day OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 1 day London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 1 day Rosneft Signs $400M Deal With Kurdistan
  • 1 day Kinder Morgan Warns About Trans Mountain Delays
  • 2 days India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 2 days Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 2 days Russia, Saudis Team Up To Boost Fracking Tech
  • 2 days Conflicting News Spurs Doubt On Aramco IPO
  • 2 days Exxon Starts Production At New Refinery In Texas
  • 2 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 3 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 3 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 3 days China To Take 5% Of Rosneft’s Output In New Deal
  • 3 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 3 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 3 days VW Fails To Secure Critical Commodity For EVs
  • 3 days Enbridge Pipeline Expansion Finally Approved
  • 3 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 3 days OPEC Oil Deal Compliance Falls To 86%
  • 4 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 4 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 4 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 4 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 4 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 4 days Aramco Says No Plans To Shelve IPO
  • 7 days Trump Passes Iran Nuclear Deal Back to Congress
  • 7 days Texas Shutters More Coal-Fired Plants
Alt Text

Is OPEC Considering Deeper Output Cuts?

You could argue OPEC and…

Alt Text

The New Challenger To Lithium Batteries

The lithium-ion battery is head…

Alt Text

The Geopolitical Consequences Of U.S. Oil Exports

The United States has ramped…

Gaurav Agnihotri

Gaurav Agnihotri

Gaurav Agnihotri, a Mechanical engineer and an MBA -Marketing from ICFAI (Institute of Chartered Financial Accountants), Mumbai, is a result oriented and a business focused…

More Info

Paris Climate Talks To Be A Boon For Energy Storage

Paris Climate Talks To Be A Boon For Energy Storage

As the world leaders come together in Paris to tackle the hot issue of climate change, there is one market that not only remains crucial for growth of renewable energy sources; but also remains the most talked about market in the global investment circles: the energy storage market.

Energy storage is steadily turning out to be one of the hottest markets in the energy sector. We are witnessing several exciting new developments in this field related to utilities, transportation and the military sector. The U.S. market continues to be the largest energy storage market. As the latest report from IHS re-affirmed that the U.S., along with Japan and South Korea, will prove to be the driving forces behind the developing energy storage sector

Who are the leading investors in energy storage?

According to the IHS report, the U.S., South Korea and Japan would be easily exceeding 100 MW of annual installations between 2015 and 2016. The report suggests that these three countries might contribute almost 59 percent of the total global energy storage installations in 2016. Related: Shale Gas Revolution Is Not Done Yet

The U.S. could install around 650 MW followed by 510 MW of energy storage in Japan and around 280 MW by South Korea. "Demand for energy storage in South Korea is driven predominantly by KEPCO’s (state owned utility) frequency regulation program, which will procure 500 MW of batteries for frequency regulation over the next 4 years," said Sam Wilkinson of IHS. The IHS report states that the cost of Lithium Ion Batteries have fallen by as much as 53 percent between 2012 and 2015.

However, energy storage costs will fall even further as Tesla’s upcoming Gigafactory is expected to reduce the production costs of Lithium Ion batteries by an additional 30 percent.

In fact, Teslas Elon Musk claims that with close to 1.9 million sq. feet of space, the upcoming Gigafactory would “blow everyone’s mind”.

It is interesting to note that there is a significant amount of Japanese investment in Tesla’s Gigafactory. Panasonic, the biggest global supplier of Lithium Ion batteries, has invested close to $2 billion in the Gigafactory. Even South Korea is eying the U.S. market as LG Chem (a fierce competitor of Panasonic) has teamed up with Tesla, supplying batteries for its Roadster model.

How will energy storage affect renewable’s share of the total energy mix?

The performance of the energy storage market has a direct impact on the renewable’s share of the total energy mix. Most renewable energy sources suffer from intermittency issues and a proper energy storage system can solve the problem of intermittent power generation. Related: Other Energy Companies Accused Of Downplaying Climate Change

The IHS report states that the cost of 10MW battery storage systems would reduce to around $5 million by 2019 from $11 million in 2013. “For a typical 30-minute duration utility-scale li-ion system, more than 60 percent of the total reduction in system costs between 2013 and 2019 will come from the balance-of-plant equipment, rather than from batteries alone," said the report. With falling energy storage costs, renewable energy generation could become much more attractive and cost effective soon.

(Click to enlarge)
Related: An Unnoticed Casualty of The Commodities Price Drop

Will the climate conference in Paris lay a foundation for a stronger energy storage market?

One of the important goals of the Paris climate change summit is to bring down the cost of renewable energy and to make this happen, around 28 global business leaders like Bill Gates, Mark Zuckerberg, Jack Ma and political leaders like Barack Obama, Francis Hollande and others came together to launch a joint initiative that would help promote the global use of renewable energy sources through the launch of a public – private project that would be backed by the governments and through a ‘’Breakthrough Energy Coalition’’.

In fact, the world’s leading energy stakeholders like U.S., China, Saudi Arabia, India, Australia, France, Canada and Norway are likely to pledge to almost double their investments in clean energy sources in the next five years. “We'll work to mobilize support to help the most vulnerable countries expand clean energy and adapt to the effects of climate change we can no longer avoid,” said President Barack Obama on his official Facebook page.

For now, it is unclear how significant and how quickly the investments will translate into concrete advancements and innovations, but one thing is clear: the cost of energy storage will steadily decline. That means energy storage could quickly turn into a white hot investment opportunity.

By Gaurav Agnihotri of Oilprice.com

More Top Reads From Oilprice.com:




Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News