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The Future of Energy Storage
Surging Prominence of Both Bulk and Distributed Energy Storage Propels the Market
Suba Arunkumar, Research Manager
Malavika Tohani, Research Director
Energy & Environment
9 June 2015
© 2015 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property of Frost & Sullivan. No part of it may be circulated, quoted, copied or otherwise reproduced without the written approval of Frost & Sullivan.
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Today’s Presenters
Suba Arunkumar,
Research Manager, Energy & Environment, Frost & Sullivan
Follow me on LinkedIn
https://in.linkedin.com/pub/suba-arunkumar/10/bb9/54
Expertise:
• Over 10 years experience in the batteries & energy
storage sector. Have worked on consulting
assignments with major global battery manufacturers.
Specific expertise includes:
• Technology Market Assessment
• Batteries & Energy Storage Valuation
• Geographic Expansion
Malavika Tohani,
Research DirectorEnergy & Environment, Frost & Sullivan
Follow me on LinkedIn
https://uk.linkedin.com/in/mtohani
Expertise:
• With over 10 years experience in providing detailed
market research and consulting advice on areas such as
energy storage, power supplies, smart grid and distributed
generation Specific expertise includes:
• Technology Market Assessment
• Market Due Diligence
• Competitive Strategies
• Mergers & Acquisitions Identifications
3
Now Available On Demand
Listen On Demand
https://www.brighttalk.com/webcast/5563/156229Or
www.frost.com/ab
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Agenda
Energy Storage – Its DriversEnergy Storage – Its Drivers
Key RegulationsKey Regulations
Energy Storage TechnologiesEnergy Storage Technologies
Future of Energy StorageFuture of Energy Storage
Top 10 Attractive CountriesTop 10 Attractive Countries
Business Model AnalysisBusiness Model Analysis
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Drivers for Energy StorageEnergy Storage is the key factor in the Evolution of Power Generation and Grid Stability
Policies & Regulations
Supportive policies and regulations is the key ingredient for growth of energy storage
Renewable Integration
Increasing renewable energy generation
and its seamless integration to grid
drives storage
Smart Grids
leading to Smart Cities
Smart grids and smart cities are impossible without successful storage
Source: Frost & Sullivan
Smart City Market to be Worth a Cumulative $1.565 Trillion by 2020
Installed capacity for wind & solar PV to rise from 370GW in 2012 to 1452GW in 2025
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Key RegulationsU.S is pioneer in promoting energy storage through regulations, California is No.1 in storage capacity in the U.S, other states are following.
United S
tate
s • FERC 755• FERC 1000• FERC 784• California AB2514• CA PUC Mandate• California –
STORAGE• Wyden Bill• Texas PUCT Docket
39917• ERCOT Nodal
Protocol Revision 461• FRRS Pilot• New York :
NYSERDA
Euro
pe • Germany - €25 million
scheme for promoting self consumption of stored energy
• German Development Bank subsidy for residential storage systems
• Research Council UK (RCUK) funded projects to evaluate and promote grid scale storage
Asia
Pacific • Japan: $779 Million
incentive program rolled out by Ministry of Economy, Trade and Industry (METI)
• Korea: Smart grid deployment by 2020 that includes 2GW of energy storage through Ministry of Trade, Industry and Energy
• China Energy Storage Alliance (CNESA) have set energy storage targets for 2020
Source: Department of Energy; Frost & Sullivan
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Energy Storage Types & Applications
End-usersGeneration Transmission Distribution
CentralizedStorage
RenewablesIntegration
T&D NetworkStorage
Distributed EnergyStorage
Backup and Power Quality
Residential &Commercial Storage
Large centralized energy storage for ancillary services and energy management
Large centralized/decentralized energy storage for time-shifting renewable generation
Energy storage at T&D network that support grid stability. Could be stationary or portable
Energy storage at distribution network providing small scale energy generation and energy management
Energy storage used for providing backup or high quality power for commercial and industrial consumers
Small scale energy storage systems at residential and commercial node for backup, time-shifting and act as micro-generation site
Pumped Hydro; Compressed Air
CAES; Batteries
Thermal storage, Batteries, Cryogenic Energy StorageBatteries; Flywheels;
Fuel cells; SMES
Energy Storage Types & Application along with Energy Network: Global, 2015
Source: The Center for Low Carbon Future; Frost & SullivanCAES: Compressed Air Energy Storage; SMES: Superconducting Magnetic Energy Storage
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Energy Storage TechnologiesPumped Hydro is reduced from 99% share in 2010 to 96.1% in 2015, indicating the penetration and growth of other viable storage technologies
Diversified chemistries offering different value proportion coupled with residential, commercial, V2G storage solutions drives demand for battery energy storage solutions
Source: Department of Energy – Database on Energy Storage; Frost & Sullivan
PHES177.43GW
Energy Storage Technologies (Market Penetration) (Operational, Announced and Under Construction Projects)
Insta
lled C
apacity
Lithium-ion693 MW
Flow Battery76.5 MW
Sodium Based161.5 MW
Thermal Storage33.95 GW
Till 2010 Till 2015
PHES99%
Others1%
PHES96.1%
Others3.9%
184.5 GW
130.7 GW
Energy Storage Technologies and Installed Capacities, Global, 2015
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Grid-Scale BESSLithium-ion batteries are mainly used for frequency regulation while LA batteries are used for renewable energy capacity firming
0
50
100
150
200
250
300
350
400
450
500
Installed Capacity
MW
483.46
0
500
1000
1500
2000
2500
3000
InstalledCapacity
MW
2633
Lithium-Ion 60%
Lead-Acid18%
Sodium Based17%
Nickle Based
1%
Flow4%
Utility Scale, Grid-Connected BESS Market: Market Technology Operational Installed Power (kW)
Segmentation, Global, 2014
Utility Scale, Grid-Connected BESS Market: Operational Market Size, Global, 2014
Utility Scale, Grid-Connected BESS Market: Operational Market Size, Global, 2020
Source: Frost & Sullivan
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Top 10 Attractive Countries Spain overtook U.S with installation of molten salt storage. South Korea is emerging to be a major country overtaking China with 20.6 MW of commissioned energy storage projects till 2015
20.3MW506.7MW
20.6 MW
18.6MW
Strong contributors with highgrowth potential
Emerging countries with highgrowth potential
Note: Capacities indicate battery energy storage projects commissioned from 2010 to 2015
U.S, Spain, Japan, South Korea, China, Germany are countries of strong growth potential, followed by the U.K, France, Italy, India, South Africa and Australia being emerging countries
26.2 MW909.3MW
Source: U.S Department of Energy; Frost & Sullivan
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Convergence in the Storage IndustryDiversified market heading towards consolidation
Saft Batteries
Panasonic Corporation
BYD
LG Chem
AmbriAlevo Group
Amprius
Sakti3
Primus Power
ViZn Energy
Spider9
TeslaABB
Coda Energy
Siemens
S&C Electric
Younicos STEM
Sunverge RES
Advanced Energy Storage
Established Battery Manufacturers
Emerging Companies
Electrical Companies & Integrated Solution Providers
SharpNEC
Outback Power
Sun EdisonGeneral Electric
IBMGoogle
Cisco
Volkswagen
Total
Mitsubishi
Robert Bosch
Apple
Source: Frost & Sullivan
Others
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Top 3 Predictions
1Energy storage has 2596.3 MW of projects under construction and announced till May 2015. By 2020, this would be doubled.Energy storage has 2596.3 MW of projects under construction and announced till May 2015. By 2020, this would be doubled.
2Lithium-ion is the most dominant chemistry that will be the preferred one for energy storage, despite other chemistries gaining momentum. Of the 430MW of projects under construction in 2015, 244MW uses lithium-ion
Lithium-ion is the most dominant chemistry that will be the preferred one for energy storage, despite other chemistries gaining momentum. Of the 430MW of projects under construction in 2015, 244MW uses lithium-ion
3Future business models are designed to be independent of subsidy, affordable for customers with short term ROI, that would still be profitable for utilities.Future business models are designed to be independent of subsidy, affordable for customers with short term ROI, that would still be profitable for utilities.
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For Additional Information
Suba Arunkumar
Research Manager
Energy & Environment
+91 44 6681 4527
Malavika Tohani
Research Director
Energy & Environment
+44 20 7915 7836
Chiara Caralla
Corporate Communications
+44 207 343 8314
John Raspin
Partner and Business Unit Leader
Energy & Environment
+44 207 915 7814