Factors driving energy storage in 2015

February 9, 2015

Grid reliability was an often discussed topic last year at conferences and forums dedicated to developing solutions for the country's energy infrastructure problems. One enduring problem is the grid's dependence on peaker plants, which burn large amounts of natural gas to deliver extra electricity when demand has pushed the grid past its limit. The Illinois Environmental Agency pointed out that use of peaker plants is kept to a strict minimum, as the process of quickly converting gas into electricity is expensive and harmful to the environment. Thankfully, the emergence of well-tested energy storage strategies in 2014 provided a possible roadmap for the future.

Energy storage investments expected to rise over the next decade
Data from Navigant Research predicted that global spending on energy storage purchased to supplement the grid will take an upswing over the next nine years, hitting $68.5 billion in annual revenues by 2024. The firm also noted that over 360 MW of storage projects were planned during 2013 alone, and that these projects were announced across markets in Europe, Asia Pacific and North America, said Utility Drive.

The resource speculated on why companies were looking to spend more on energy storage in the coming years, pointing toward grid reliability issues becoming a larger priority across the board and greater awareness of how energy storage can be used to offset the peak demands that force utilities to activate their peaker plants and subsequently cause customers to pay a premium for electricity.

More solar means more storage
Another factor that favors energy storage is the expected growth of renewable energy. One of the major weaknesses of renewable energy like solar is that power generated from these sources is intermittent, and fails to lineup with peak demand times. That's where energy storage comes in. As the technology grows more advanced, more users of renewable energy, from grid-scale to commercial facilities, have looked to energy storage as a solution for resolving the intermittency issues holding back solar.

It's likely then that investments in energy storage will be driven in part by greater deployment of solar energy. Daily Finance expects 2015 to be a tipping point year for solar investments - over 35 percent of new electricity capacity was generated by solar in 2014, up from 29 percent in 2013. If this trend continues, then greater interest in storage is likely to follow.

Energy storage already enjoying the spotlight in California
Visibility is an important part of how technology solutions gain more adopters, and energy storage will be getting plenty of free publicity in 2015. One of the most widely-reported energy storage projects was Southern California Edison's addition of over 260 MW energy storage capacity. The project demonstrates that distributed energy storage is a real part of the energy future. According to The New York Times, Southern California Edison's expansion will take advantage of a mix of battery storage and ice-based thermal storage. Ice storage reduces the cost of electricity for consumers and reduces the impact of peak demand on the environment.