According to data from the Pike Research report, “Energy Storage on the Grid,” the stationary energy storage sector will become increasingly important in the electricity grid of the future. Fueling the demand is the proliferation of renewable energy, the expansion of utility smart grid initiatives, and the introduction of plug-in hybrid and electric vehicles. Pike predicts worldwide installed system revenues will increase from $1.5 billion in 2010 to $35.3 billion annually by 2020.

Senior analyst David Link says, “Energy storage on the grid addresses several pressing market needs. Today, applications for energy storage include load following, renewable energy grid integration, and renewable energy time shifting. 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.”

Link also notes that some integral technologies are emerging to address the need for long-duration energy storage.  Traditional options include pumped hydroelectric storage, compressed air energy storage (CAES), and sodium sulfur (NAS) batteries. Newer energy storage technologies are lithium ion (Li-ion) batteries and flow batteries. Pike Research has determined the most significant growth opportunities in energy storage will be found in CAES, Li-ion batteries, and flow batteries.

The report also provides a detailed examination of the applications expected to drive energy storage adoption between now and 2020, as well as the technologies that will enable them. Additionally, it spotlights the business models, policy and regulatory factors, technology issues, and underlying economics that will define the rapidly expanding energy storage market.
SWOT analysis for 30 key industry players is also included.

An Executive Summary of the report is available for free download on the firm’s website. www.pikeresearch.com

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