Energy Storage To Hit Mass Markets In 5 Years-Deutsche Bank

According to a recently released study by Deutsche Bank  titled “Crossing the Chasm”, published on 2 March 2015, large-scale energy storage will become available within the next 5 years, as it becomes cheap enough and technologically ready for mass adoption.

Already, battery (mostly lithium-ion) is enjoying a healthy 20-30% cost reduction yearly to reach grid scale parity soon. The model generated by the report also calculated that the incremental cost of storage will decrease from the current 14c/kWh to 2c/kWh.

Commercial markets (from businesses and utilities) will lead the mass adoption for battery deployment, following clear economic sense with falling prices. On the other hand, households are unlikely to jump on the energy storage bandwagon in the short term, as impediments like unattractive pricing mechanisms and access to solar-cum-storage energy packages remain elusive.

Nonetheless, this represents a significant opportunity for utilities to tap on smart grids through the aggregation of neighbourhoods of solar + battery as a single source of load reduction. Deustche Bank predicts two scenarios that will turn this into a reality: Third party leasing companies and residents working together with utilities, or changes to current regulations that enable utilities to include residential solar in their rate base.

Although costs for most of the available battery technologies remain economically prohibitive, a wide range of emerging technologies such as flow batteries would fill this gap, making widespread energy storage possible soon.

 

If you want to know more about this and other topics directly from end users of energy storage technologies join us at one of these annual events: The Energy Storage World Forum (Grid Scale Applications), or The Residential Energy Storage Forum, or one of our Training Courses.

LATEST ARTICLES

The UK National Energy Grid – A Story of Islands, Trading, and Energy Storage

As first seen in Energy Global, grid software acts as a modern-day map, helping to chart and navigate today’s energy grids; software engineers are tasked with carefully delineating how each region’s energy markets operate. However, looking more closely at energy markets makes clear how unique each market is – each defined by different topography, resources,…

Read More

Future energy predictions: Growth of flexibility and grid forming

  It is well known that COVID-19 has caused low energy demand and the growth of renewable energy across Europe. Now, Andrew Tang, Vice President for Energy Storage at Wärtsilä, predicts this will result in swift action to build better grid resiliency. The share of renewable power across Europe has skyrocketed over the last six…

Read More

Energy Storage Systems: the role of an Integrator

Simplifying BESS deployments by mastering their associated risks With the introduction of Battery Energy Storage Systems ‘BESS’, a new role has been created on the value chain. It is the role of a BESS integrator. The role of an integrator can be misunderstood at times or blended with other roles at other times. This is…

Read More

★REVIEWS

“Probably the most interactive and well organized storage event on the calendar.”

★★★★★

Sales Director, S&C

“Well-designed, organized, friendly staff– and various international contacts we hope to do business with soon.”

★★★★★

Marketing Manager, Gildemeister

“High scientific content, well targeted, perfect organization.”

★★★★★

Expert Technical & Governance, Elia

Excellent networking event. The sponsorship was well worth it.”

★★★★★

Manager, ATL

View More

x