Grid Scale Battery Storage Systems
Grid scale battery storage systems are increasingly becoming a viable solution to meet a variety of energy needs. With government policies and incentives to encourage use of renewable energy, battery storage is becoming increasingly common. However, the technology is not limited to commercial applications and can also be used in residential settings. For example, the technology can be used to power homes and provide electricity for businesses.
The market for grid scale battery storage system is expected to reach USD xx billion by 2030, expanding at a 41.7% CAGR over the next seven years. Rising global energy consumption coupled with a declining cost of batteries are fueling increased demand for these systems. In addition, the increasing number of electric vehicles is increasing the demand for energy. Large battery systems can absorb excess electricity from the grid when prices are low and discharge when prices are high, thus reducing power consumption and monthly expenses.
One of the most important technologies for grid scale battery storage is a lithium-ion battery that is capable of storing 40 MW hours of electricity. That amount of energy is enough to power up to 10,000 homes for an entire day. However, the system is not expected to be operational until 2022. In the meantime, the system will serve as an alternative source of electricity for industrial customers. Ultimately, this technology will improve the quality of electrical service by allowing energy to be stored when prices are low and used when demand is high. The system will also reduce costs for all parties involved.
The Global Market For Grid Scale Battery Storage Systems
Developing grid scale battery storage systems will allow utilities to tap into the renewable energy produced by solar and wind farms in times of outages. This will help them manage energy loads and reduce costs and allow them to integrate renewable energy sources more effectively. Building owners will also benefit from distributed battery storage systems. During outages, these systems will provide backup power for hundreds of thousands of households.
While the North American grid is a promising market for grid-scale battery storage, the Asia-Pacific region remains the region with the greatest potential. In particular, India and Australia both offer high opportunities for grid-scale battery storage. The former has several large-scale battery energy storage projects, including Hornsdale Power Reserve in South Australia. Meanwhile, India is undergoing an energy transition and is focusing on grid integration of renewable power.
As the market for solar energy storage grows, the demand for battery storage is also growing. Solar energy storage companies are increasing their investments in developing batteries. According to the US Energy Storage Monitor, in the second quarter of 2021, 345 MW of new battery capacity will be installed. Companies in the industry that produce batteries are also preparing for the future by developing cheaper lithium-ion batteries.
A battery storage system for solar power can serve as a backup source of power in case the grid goes down. This will allow you to continue using your appliances, lights, well, and other vital functions. The system can be charged by solar or from a backup generator. A battery storage system can also be an excellent financial justification for solar energy. It can save you money on utility bills by storing electricity in the morning when utility rates are lower, and allowing you to use it later when you need it most.
