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WORLD ENERGY STORAGE
Energy storage: Generating global interest Energy storage solutions, whether applied to the power grid or EVs, make systems more flexible and are suitable for meeting low cost, low carbon electricity demands. Following is a glimpse into the energy storage development and deployment scenario around the world, put together by Team ETN.
E
nergy Storage has been around since a long time, if you consider pumped-storage hydro (PSH) power as a form of energy storage. In fact, as of 2018, PSH accounted for almost 95 percent of the energy storage capacity in the US. In India, PHS is ideally suited to play a leading role in the country’s ambitious plans for new lowcost, domestic renewable energy. The Indian government’s initiatives look promising in this regard, like the recently amended ‘hybrid wind-solar with storage’ policy that states that any form of storage – not just batteries – could be used in hybrid projects, including PHS, compressed air and flywheels. Last year, India’s Ministry of Power proposed electricity rule changes to incentivize electricity supply at times of peak demand, that supports the cause of storage projects.
Storage to balance increasing RE input
The increasing share of intermittent RE sources like solar and wind in conventional energy mix, will make balancing the system more difficult. Now, since the RE resources function only during certain time of the day, having both traditional as well as renewable systems running simultaneously does not make much sense. The purpose of the RE integration is to reduce fossil fuel generated electricity. Here, using energy storage becomes imperative to be able to provide stable, uninterrupted power supply at all times. Use of energy storage makes the complexity of a power grid more flexible, and also makes efficient use of electricity. There are typically three types of storage projects: behind-the-meter (BTM) commercial
applications, utility-scale battery storage that replaces gas peaker plants, and storage systems deployed at large solar PV or wind generation facilities. Solar or wind projects coupled with affordable battery storage seem to work as well as traditional coal-fired electricity generation, in dispatching power to the grid whenever required.
Li-ion favoured storage technology
In battery storage, Li-ion is the fastgrowing technology that, according to research analysts, is expected to account for 85 percent of newly installed energy capacity in the world, with annual growth expected to reach more than 28GW by 2028. Batteries are also effectively used in electric vehicles. The push towards e-mobility to reduce harmful tailpipe emissions, has seen the growth of batteries for EVs world over. China, Europe and the US are leading markets for EVs, which is essentially the driver for growth of batteries in the power sector. Countries that lead in battery manufacturing include China (over 60 percent) followed by the US, Korea, Europe and Japan (less than 10 percent each). Overall, energy storage improves grid flexibility, reliability, and resiliency. It stabilizes power quality and reduces RE limitations; and end-users experience reliable, quality and low-cost power benefits. Analysts like Navigant Research estimate that energy storage will be a $50 billion global industry in the next few years, with an installed capacity of over 21GW.
Europe, Russia, UK, Middle East and North Africa (MENA)
| September-October 2020
EUROPE
Europe is investing billions of dollars into research in an attempt to overturn Asia’s dominance of the battery market. In 2019, the European Commission approved €3.2 billion of State funding under its ‘important project of common European interest’ (IPCEI) rules. The investment will support battery research and innovation across Belgium, Finland, France, Germany, Italy, Poland, and Sweden. From 2020 to 2024, Europe aims the installation of at least 6GW of renewable hydrogen electrolyzers in the European Union, and the production of up to one million tons of renewable hydrogen. Then from 2025 to 2030, hydrogen will become an intrinsic part of the EU’s integrated energy system, with at least 40GW of renewable hydrogen electrolyzers and the production of up to ten million tons of renewable hydrogen in the EU. Finally, from 2030 to 2050, renewable hydrogen technologies should reach maturity and be deployed on a large scale across all hard-to-decarbonize sectors. Europe's energy storage capacity across all segments is projected to grow from 3GW (exclusive of pumped hydro) to 26GW in 2030 and 89GW by 2040.
RUSSIA
Energy storage is a top priority for everyone active in RE, and Russia is no exception. The Kremlin has plans to derive 4.5 percent of electricity from renewable sources by 2024, which means 5.5GW of renewables capacity and ESS to offset the intermittency of wind and solar energy generation. The combined effect of today’s low-cost electricity generation via photovoltaic modules, water, and
