The Future of Energy Storage

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

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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

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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


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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


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


+91 44 6681 4527

[email protected]

Malavika Tohani

Research Director


+44 20 7915 7836

[email protected]

Chiara Caralla

Corporate Communications

+44 207 343 8314

[email protected]

John Raspin

Partner and Business Unit Leader


+44 207 915 7814

[email protected]