Batteries have not traditionally been an integral part of the utility grid, primarily due to concerns about cost, safety, durability, and efficiency. Today, however, technological advances in electrochemistry have enabled a new generation of advanced batteries to start playing an important role in grid management. Click to tweet: According to a new report from Navigant Research, worldwide revenue from advanced batteries for utility-scale energy storage applications will grow from $164 million in 2014 to more than $2.5 billion in 2023.
“Unlike most other networked systems, the electricity grid functions mostly without any stored resources,” says Sam Jaffe, principal research analyst with Navigant Research. “Innovative electrochemistries – particularly lithium ion and its subchemistries – have solved many of the challenges inherent in battery energy storage, and there are more than a dozen individual applications that could utilize batteries for energy storage.”
The clear market leader in utility-scale applications of batteries is lithium ion, which offers the best mix of performance specifications (including energy density, volumetric density, cycle life, calendar life, safety, and cost) for most energy storage applications. Other battery technologies, however, remain viable, according to the report. Flow batteries have been shown to excel at long-duration energy storage applications, and advanced lead-acid batteries have proven to be excellent performers in power-intensive applications.
The report, “Advanced Batteries for Utility-Scale Energy Storage”, analyzes the global market for advanced batteries for large-scale grid applications. The study examines the business case for various utility-scale energy storage applications and explores the strengths and weaknesses of the major battery chemistries and how they match to specific applications. Global market forecasts for energy capacity, power capacity, and revenue, segmented by region, application, chemistry, and subchemistry, extend through 2023. The report also provides profiles of the key market participants, including major battery manufacturers and systems integrators. An Executive Summary of the report is available for free download on the Navigant Research website.