If you’ve ever wondered what an energy storage company does, then you’ve come to the right place. This article explores the basics of the energy storage industry, the impact COVID-19 is having on the industry, and China’s plans for developing energy storage. There are many things to consider if you’re considering entering the industry.
A company that specializes in energy storage provides a number of services. These services include storing electricity, providing backup power during power interruptions, and monitoring the storage systems’ performance. These services are crucial to the reliability and resilience of the grid. These companies are a valuable resource that companies can use to save money on their electricity bills.
Energy storage is an important tool to help power grids adapt to the changing needs of consumers. It helps smooth the delivery of renewable energy resources, and reduces the need for backup power plants. It also helps add renewable resources to the grid, which increases the capacity factor of the resources that are already there and helps the supply mix change.
States are recognizing the benefits of energy storage. California, Oregon, and Massachusetts have passed laws requiring utilities to build five megawatts of energy storage by 2020. In July 2018, the U.S. House of Representatives passed H.4857, which outlines a goal to install at least 1,000 megawatts of energy storage capacity by 2030.
Moreover, several other states have taken steps to promote the use of energy storage. Hawaii has been at the forefront of the transition to renewable energy storage. Two recent Hawaiian Electric Industries projects were completed at less than eight cents per kilowatt-hour (MWh). Additionally, Massachusetts has passed H.4857, which calls for the development of 1,000 megawatt-hours of energy storage capacity by 2025.
Among its many benefits, energy storage allows buildings to lower their electricity demands during peak times. These peak times are summer days and nighttime, when electricity demand is at its highest. During these times, electricity prices increase, and power plants must ramp up to meet the increased demand. With energy storage, buildings can maintain a steady supply of electricity and sell it back to the grid during times when demand is lowest.
In the face of COVID-19, the energy industry must focus on the safeguarding of processes, assets, and supply chains to maintain a steady supply of raw materials. This early intervention is critical in minimizing the risk of recession and economic crisis. Investors and developers must identify weak supply chains and implement appropriate alternatives to ensure continued supply.
In the short term, COVID-19 could delay some distributed energy projects. However, it may increase demand in the long run. The storage industry expects that the impact will cause revenue reductions and customer delays. In addition, there will be problems procuring equipment and supplies, and permits and approval processes will take longer to complete. A third of those polled predicted revenue reductions of up to 20%. However, most respondents do not expect to lose any jobs.
The Asia-Pacific region is expected to be the largest market for battery energy storage during the forecast period. The region is home to some of the fastest-growing economies in the world. Also, government policies in the area try to reduce the damage that the energy industry does to the environment.
The PHES (pumped hydroelectric energy storage) technology is the dominant technology in stationary electrochemical energy storage, and it is widely used. While PHES dominates in stationary applications, LIBs (Lithium-ion batteries) are the most popular for nonstationary applications. Despite this, the impact of COVID-19 will likely change the rates of LIB usage. Because of the COVID-19 outbreak, large-capacity grid energy storage has become more important.
In China, there is a growing market for energy storage. The government has set a goal of ramping up the total capacity of renewables by 2020, which includes energy storage. The country is already on track to have about 1.2GW/1.7GWh of non-hydro energy storage deployed by the end of 2020. By 2026, it expects to have more than seven times that amount, or roughly 70GW.
China’s energy storage market is still in its infancy and there are some challenges to overcome. Other countries are seeing their markets slow down, while in Europe there have been a series of battery fires. However, despite these challenges, Chinese companies are working to supply batteries overseas and for other uses. China also wants to hurry up the rollout of its 5G communications network, which will need a lot of energy for backup power.
As the solar market in China continues to grow, demand for energy storage is expected to rise. As such, the government is actively updating its policies to encourage the development of new energy storage technologies. For example, on June 7th, the central government issued a notice that allows energy storage companies to apply for solar markets and participate in ancillary services. This could help improve the payback and economic value of the industry in China.
By 2024, the Chinese energy storage market is expected to grow by 30%. Supportive government policies and ongoing investments in renewable power generation will further encourage this growth. In addition, growing concerns over global warming and efforts to curb carbon emissions will increase demand for energy storage systems. CATL, Exide Technologies, Dynavolt, Sunwoda, CLOU Electronics, and Sacred Sun are some of the big players in China’s energy storage market right now.
China has recently issued signals that encourage foreign investors to invest in the energy storage industry. This has created a favorable environment for foreign technology providers and investors. In addition, the government is actively promoting international cooperation. China’s energy storage market is growing slowly, but recent policy changes are expected to speed up the process and make China a leading player in energy storage around the world.