Energy storage could follow in the wake of solar
October 30, 2014
Solar power has been in development since the early 1970s, and the energy source has come a long way since its origins as a novelty technology. In fact, the International Energy Agency predicts that solar power could be the largest source of electricity on the planet in just a few decades. Solar had its fair share of detractors on its way to the top. Greater awareness and improving technology helped solar blossom into the go-to alternative power source. Energy storage technology is following in solar's footsteps, and it may have a similar worldwide impact as the solution gains popularity.
Lessons from solar to leverage
Energy storage is fortunate to come in the wake of solar energy's rise, as investors are already more open to considering how energy innovations can enhance their company's bottom line and public image. In an interview with Utility Dive, Senior Vice President of Business at Greensmith Andy Tang notes that this mindset is a huge benefit for energy storage's notoriety. Greater acceptance of solar paved the way for an increasingly favorable regulatory environment and this new environment created an acute need for energy storage. Furthermore, energy storage will naturally follow in solar's path as the technology becomes an essential part of renewable energy projects. Utility Dive also points out that regulators are pushing storage in New York, California, Hawaii and Puerto Rico.
Another relevant lesson from solar energy is that the some energy storage technologies such as battery storage will take off as quickly as its price drops. Tang points out that the price of some energy storage solutions has already declined by 40 percent in the past three years. This rapid cost reduction is a boon for the energy storage industry and will help draw attention to the feasibility of the technology. Tang predicts that the cost of energy storage technology will continue to decrease as the technology and adoption improves. Other energy storage technologies such as thermal storage, ice or water, is affordable, and proven. Acceptance of these systems can be in see in over 1GW of installed capacity worldwide.
Getting the most from renewables
Ultimately, it will be cost-effectiveness and education that drives energy storage toward greater acceptance by manufacturers and big corporations. Energy storage technology will be especially attractive as companies have a greater understanding of electrical rates and look to expand past the limits of renewable energy infrastructures. Firms may pursue LEED, netzero or disengage from the grid by investing in renewable energy and supplementing the renewables with energy storage technology. The latter solution is becoming the increasingly preferable choice, and the supplementary nature of these technologies is leading the industries to become more intertwined, according to Greentech Media.
Energy storage applications allow companies to get the most from grid scale renewable energy resources as well. For example, a utility operating 1,000 megawatts of wind turbine infrastructure may actually only utilize 20 percent of the wind farm's generated electricity. Daily peak demand does not typically line up with periods when turbines are collecting the most energy, and fossil fuels must be used to fill the void. The utility could access the full potential of its wind turbines by collecting turbine-generated electricity throughout the night-time when demand for power is less and utilize that energy during the day when power demands are at their highest.
