Lithium Ion, Sodium Sulfur, Advanced Lead-Acid, Sodium Metal Halide, and Advanced Flow Batteries for Grid Asset Optimization.
Over the next 10 years, the global power sector will undergo dramatic changes in its technical and business profiles. As generation resources evolve – both with and without carbon constraints – load profiles will grow and become increasingly more dynamic. These changes will necessitate an adaptive flexibility from system infrastructure, generation resources, and load. To manage these changes and prepare for future innovation, utilities, grid operators, and service providers are developing strategies that enhance grid flexibility, incorporate carbon-free generation resources, and accommodate growing electricity demand. What role advanced batteries will play in these strategies remains uncertain.
The market opportunity for advanced batteries in the utility sector is inherently tied to two drivers: 1) rising demand for electricity and 2) the increasing penetration of variable renewable energy generation. These two forces are carving out niche service applications for advanced batteries that integrate these variable resources and enhance power quality on the grid. Moreover, certain global markets will present opportunities for advanced batteries in rural electrification and transmission and distribution (T&D) investment deferral. But, advanced batteries are not the only assets that can provide these services. Demand response (DR) and other energy efficiency programs may be the low hanging fruit, but advances in electric grid infrastructure, such as smart inverters, could accomplish the same objectives as advanced batteries. Utilities and grid operators are not yet convinced that advanced batteries are the only path forward, but many do agree that the current resources will not be sufficient in the long term.
This Pike Research report explores the market opportunity and business models for advanced batteries for utility-scale energy storage applications including grid asset optimization, T&D deferral, renewables integration, ancillary services, and arbitrage. The study includes an assessment of the technical characteristics of advanced battery technologies such as lithium ion, sodium sulfur, advanced lead-acid, sodium metal halide, and advanced flow batteries. Key industry players are profiled and global market forecasts for installed capacity and revenue are provided through 2022, segmented by application, technology, and region.
Key Questions Addressed:
What are the technical differences between the leading advanced battery technologies?
Why should utilities use advanced batteries for utility-scale energy storage, as opposed to conventional technologies such as pumped hydro storage?
What are the leading utility-scale applications for advanced batteries? Which technologies are better suited for which applications?
What are the leading utility markets or regulatory environments for advanced batteries?
Which regulations are encouraging the development of business models for advanced batteries in the utility industry?
Who are the leading battery manufacturers, service providers, and utilities focusing on advanced batteries for utility-scale applications?
Who needs this report?
Advanced battery manufacturers and component providers
Energy storage technology vendors and integrators
Energy storage service providers
Utilities
Government agencies
Investor community
Table of Contents
1. Executive Summary
1.1 Advanced Batteries: No Silver Bullet Exists
2. Market Issues
2.1 Overview of Market Issues
2.2 Utility Applications
2.2.1 Long Duration
2.2.1.1 Arbitrage
2.2.1.2 Transmission and Distribution Deferral
2.2.1.3 Renewables Integration
2.2.1.3.1. Energy Shifting
2.2.1.3.2. Renewable Energy Firming
2.2.1.3.3. Ramping
2.2.1.4 Grid Asset Optimization
2.2.2 Short Duration
2.2.2.1 Ancillary Services
2.2.2.1.1. Spinning Reserves
2.2.2.1.2. Frequency Regulation
2.3 Electricity Markets
2.4 Vertically-integrated Electricity Markets
2.5 Deregulated Electricity Markets for Advanced Batteries
2.6 Regional Markets
2.6.1 North America
2.6.1.1 Overview of the Electric Power Sector in North America
2.6.1.1.1. California
2.6.1.2 Business Environment in North America
2.6.1.2.1. Vertically-integrated Utilities in North America
2.6.1.2.2. Deregulated Markets in North America
2.6.2 Western Europe
2.6.2.1 Grid Infrastructure and Internal Market Development in Western Europe
2.6.2.2 Business Environment in Western Europe
2.6.2.3 Germany
2.6.3 Central and Eastern Europe
2.6.4 Asia Pacific
2.6.4.1 China
2.6.4.1.1. Overview of Electric Utility Sector in China
2.6.4.1.2. Business Environment in China
2.6.4.2 Japan
2.6.4.2.1. Overview of the Electric Power Sector in Japan
2.6.4.2.2. Business Environment in Japan
2.6.5 Latin America
2.6.6 The Middle East
2.6.7 Africa
2.6.7.1 South Africa
2.6.7.1.1. Overview of the Electric Power Sector in South Africa
2.6.7.1.2. Business Environment in South Africa
3. Business Models
3.1 Overview of Business Models
3.2 Advanced Battery Business Models
3.2.1 Utilities
4. Technology Issues
4.1 Technology Overview
4.2 Advanced Batteries: Basics
4.2.1 Battery Management System
4.2.2 Balance of System
4.2.3 Hybrid Battery Systems
4.3 Battery Chemistries
4.3.1 Advanced Lead-Acid Batteries
4.3.1.1 Market Status and Costs for Advanced Lead-Acid Batteries
4.3.1.2 Ideal Applications for Advanced Lead-Acid Batteries
4.3.2 Sodium Sulfur Batteries
4.3.2.1 Market Status and Costs for NaS Battery Systems
4.3.2.2 Ideal Applications for NaS Battery Systems
4.3.3 Flow Batteries
4.3.3.1 Market Status and Costs of Flow Batteries
4.3.3.2 Ideal Applications for Flow Batteries
4.3.4 Lithium Ion Batteries
4.3.4.1 Lithium Ion Chemistries
4.3.4.2 Market Status and Costs of Li-ion Batteries
4.3.4.3 Ideal Applications for Li-ion Batteries
4.3.5 Sodium Metal Halide
4.3.5.1 Market Status and Costs for Sodium Metal Halide Batteries
4.3.5.2 Ideal Applications for Sodium Metal Halide Batteries
5. Key Industry Players
5.1 Overview
5.2 Advanced Lead-Acid
5.2.1 Xtreme Power Inc.
5.3 Sodium Sulfur
5.3.1 NGK Insulators Ltd.
5.4 Lithium Ion
5.4.1 A123 Systems, Inc.
5.4.2 Altairnano
5.4.3 BYD Company Limited
5.4.4 Dow Kokam
5.4.5 Electrovaya Inc.
5.4.6 LG Chem Ltd.
5.4.7 Panasonic Electric Works Co., Ltd.
5.4.8 Saft Groupe
5.4.9 Samsung SDI Co. Ltd.
5.4.10 Seeo
5.5 Flow Batteries
5.5.1 EnerVault
5.5.2 Premium Power Corp.
5.5.3 Primus Power
5.5.4 Prudent Energy
5.5.5 RedFlow Limited
5.5.6 ZBB Energy Corporation
5.6 Other Batteries
5.6.1 Aquion Energy
5.6.2 General Electric
5.6.3 Fiamm SoNik
5.7 Battery Management Providers
5.7.1 Growing Energy Labs Inc.
5.7.2 Sendyne Corp.
5.7.3 Spider9
5.8 Project Developers & Systems Integrators
5.8.1 AES Energy Storage, LLC
5.8.2 S&C Electric Company
6. Market Forecasts
6.1 Overview
6.2 Primary and Secondary Applications for Advanced Batteries in the Utility Sector
6.3 Forecasts by Technology
6.4 Forecasts by Region
7. Company Directory
8. Acronym and Abbreviation List
9. Table of Contents
10. Table of Charts and Figures
11. Scope of Study, Sources and Methodology, Notes
List of Charts and Figures
Total Installed Capacity of Advanced Batteries for Utility-Scale Applications by Region, World Markets: 2012-2022
Total Installed Capacity of Advanced Batteries for Utility-Scale Applications by Application, World Markets: 2012-2022
Renewables Integration as the Primary Application of New Installed Capacity, World Markets: 2012-2022
Total Installed Capacity of Advanced Batteries for Utility-Scale Applications by Technology, World Markets: 2022
Total Market Revenue for Advanced Batteries for Utility-Scale Applications by Region, World Markets: 2012-2022
Cost Curves for Leading Advanced Batteries for Utility-Scale Applications by Technology, World Markets: 2012-2022
Applications and Benefits of Utility-scale Advanced Battery Storage
Unit Cost of Transmission for Wind in $/kW-wind Terms
U.S. Renewable Portfolio Standards
Status of Electric Power Regulatory Restructuring in North America, 2010
Independent System Operator/Regional Transmission Organization Regions
ENTSO-E Grid Development Plans
Structure of the Japanese Power System (Since 2006)
Electricity Production, by Fuel Type, in GWh, Latin America: 2008
Advanced Lead-Acid Battery Cycle Life Comparison to Other Advanced Batteries
Grid-Scale Applications for NaS Battery Systems
List of Tables
Value of Ancillary Services in Select U.S. Deregulated Markets
AB 2514 Implementation Timeline
Transition Challenges in the Power Sector for Central European Countries: 2006
Key Players in the Chinese Electric Power Sector
Key Players in the Japanese Electric Power Sector
Advanced Batteries for Utility-Scale Applications, Summary of Benefits and Potential Business Models
Summary of the Operating Characteristics of Leading Advanced Battery Technologies
Characteristics of Lithium Ion Battery Technologies
Total Installed Capacity of Advanced Batteries for Utility-Scale Applications by Region, World Markets: 2012-2022
Total Installed Capacity of Advanced Lead-Acid Batteries for Utility-Scale Applications by Region, World Markets: 2012-2022
Total Installed Capacity of NaS Batteries for Utility-Scale Applications by Region, World Markets: 2012-2022
Total Installed Capacity of Advanced Lithium Ion Batteries for Utility-Scale Applications by Region, World Markets: 2012-2022
Total Installed Capacity of Advanced Flow Batteries for Utility-Scale Applications by Region, World Markets: 2012-2022
Total Installed Capacity of Sodium Metal Halide Batteries for Utility-Scale Applications by Region, World Markets: 2012-2022
Total Installed Capacity of Advanced Batteries for Utility-Scale Applications by Application, World Markets: 2012-2022
Total Installed Capacity of Advanced Batteries for Grid Asset Optimization by Technology, World Markets: 2012-2022
Total Installed Capacity of Advanced Batteries for T&D Deferral by Technology, World Markets: 2012-2022
Total Installed Capacity of Advanced Batteries for Renewables Integration by Technology, World Markets: 2012-2022
Total Installed Capacity of Advanced Batteries for Ancillary Services by Technology, World Markets: 2012-2022
Total Installed Capacity of Advanced Batteries for Arbitrage by Technology, World Markets: 2012-2022
Renewables Integration as the Primary Application of New Installed Capacity, World Markets: 2012-2022
Total Market Revenue for Advanced Batteries for Utility-Scale Applications by Technology, World Markets 2012-2022
Total Market Revenue for Advanced Batteries for Utility-Scale Applications by Technology, North America: 2012-2022
Total Market Revenue for Advanced Batteries for Utility-Scale Applications by Technology, Western Europe: 2012-2022
Total Market Revenue for Advanced Batteries for Utility-Scale Applications by Technology, Asia Pacific: 2012-2022
Total Market Revenue for Advanced Batteries for Utility-Scale Applications by Technology, Latin America: 2012-2022
Total Market Revenue for Advanced Batteries for Utility-Scale Applications by Technology, Eastern Europe: 2012-2022
Total Market Revenue for Advanced Batteries for Utility-Scale Applications by Technology, Middle East: 2012-2022
Total Market Revenue for Advanced Batteries for Utility-Scale Applications by Technology, Africa: 2012-2022
Total Installed System Revenue for Advanced Lead-Acid Batteries for Utility-Scale Applications by Region, World Markets: 2012-2022
Total Installed System Revenue for NaS Batteries for Utility-Scale Applications by Region, World Markets: 2012-2022
Total Installed System Revenue for Advanced Lithium Ion Batteries for Utility-Scale Applications by Region, World Markets: 2012-2022
Total Installed System Revenue for Advanced Flow Batteries for Utility-Scale Applications by Region, World Markets: 2012-2022
Total Installed System Revenue for Sodium Metal Halide Batteries for Utility-Scale Applications by Region, World Markets: 2012-2022
Total Installed Capacity of Advanced Batteries for Utility-Scale Applications by Technology, World Markets 2012-2022
Total Installed Capacity of Advanced Batteries for Utility-Scale Applications by Technology, North America: 2012-2022
Total Installed Capacity of Advanced Batteries for Utility-Scale Applications by Technology, Western Europe: 2012-2022
Total Installed Capacity of Advanced Batteries for Utility-Scale Applications by Technology, Eastern Europe: 2012-2022
Total Installed Capacity of Advanced Batteries for Utility-Scale Applications by Technology, Asia Pacific: 2012-2022
Total Installed Capacity of Advanced Batteries for Utility-Scale Applications by Technology, Latin America: 2012-2022
Total Installed Capacity of Advanced Batteries for Utility-Scale Applications by Technology, Middle East: 2012-2022
Total Installed Capacity of Advanced Batteries for Utility-Scale Applications by Technology, Africa: 2012-2022
