Research and Markets have released their projections for the growth of global battery energy storage systems pertaining to the smart grid. The report investigates the growth from 2016 to 2020. What the report reveals is that the market for smart grid battery technology will grow at a CAGR of 72.91% from 2016 to 2020. The report was generated through industry analysis which included market analysis and interviewing engineering experts.
The companies who took part in the report are some of the biggest engineering companies in the world today: Siemens, ABB, Samsung, GE-Alston, Bosch, AES Energy Storage, Bosch, Saft, and more. The report investigates the current market landscape, how batteries are segmenting the marketing, market drivers, impact of those drivers and key leading countries, amongst other things.
The research was conducted by Technavio, who said: "With growth in population and increasing urbanization, there has been an increase in power consumption. Excess power consumption has led to power outages in many countries and has also resulted in heavy loads during peak hours. One of the reasons for power outages is the massive loss of electricity during its transmission and distribution from the power plants. The use of smart grid storage technologies enables reduction of such losses and improves the efficiency of power plants."
Lithium-ion batteries are used to store the energy that these renewable technologies generate. The battery market will grow at a CAGR of 72% from 2016 to 2020. Sayani Roy, an analyst at Technavio for smart-grid research, said: "The cost of Li-ion batteries, however, is a big challenge for the industry. Companies are focusing on developing cost-effective Li-ion batteries. The Li-ion battery cost has dropped at an average of 23% per year since 2010, while the energy storage system cost has also dropped at an average of 14% per year. This has led to a total installation cost reduction by 17%."
The global need for power will be increasing the desirability of smart-grid technologies, hence the rise in annual growth percentages. To see physical proof of this growth, REN21 conducted a report named the Renewables 2016 Global Status Report. The account said that 25 percent of global electricity capacity in 2015 was powered by renewable energy technologies.
According to their report, wind and solar made up 77 percent of the smart-grid technology that provided the global renewable energy in 2015. Hydropower was the second biggest contributor. The report also showed that global investment reached a "record level" in 2015. It showed that renewable technologies were fast replacing fossil fuel energy technologies.
Employment in renewables grew - excluding hydroelectric power - to 8.1 million jobs in 2015. Solar industries employed the most engineers, however, hydroelectric power supplied 1.3 million jobs by itself.
Source: Business Wire