Why Is Distributed Energy Important?

Gabrielle Anderson Release: November 30, 2022 Update: December 9, 2022

 aid in the balance of power supply and demand on a grid. It can be installed on land, at sea, or beneath the ground. These energy storage systems are linked to a high-voltage power network via a series of transformers. These transformers lower the voltage, allowing more power to be delivered over greater distances.

Distributed energy storage is a critical component of a modernisation strategy for the energy system. It has the potential to increase reliance on renewables while also providing major climatic benefits. It can also help support smart grids by balancing generation and demand throughout a grid.

Thermal Energy Storage Systems, Mechanical Technology, and Electro Chemical Technology are the three major technology segments in the worldwide energy storage industry. Over the projection period of 2022-2027, the Thermal Storage Technology sector is predicted to increase at a CAGR of 9.2%.

The worldwide demand for energy has been expanding at an exponential rate. Buildings alone account for 30% of global energy use. By 2035, the investment required to supply this demand will have risen to $2 trillion per year.

Distributed Energy Storage Systems

What’s Driving Demand for Distributed in the United States?

The United States generated 826 TWh of power from renewable sources, according to the Energy Information Administration (EIA). In addition, 163 energy storage devices with a combined storage capacity of 1,688 MWh were placed across the country.

The country’s national and municipal governments have imposed different restrictions and offered incentives to encourage people to use electric vehicles.

The increased usage of renewable energy sources for power generation will drive demand for distributed energy storage systems in the United States. As a result, the US market for is expected to reach $2.6 billion by 2032.

What is the Current State of the China Distributed Market?

China has the most people on the planet. Increased population leads to increased urbanization and industry, which drastically raises energy demand. Due to the country’s high energy demand and environmental challenges, China began using distributed energy storage systems in 1998, and these systems have evolved rapidly since then.

Energy security is prioritized in China’s 14th five-year plan, followed by environmental development and decarburization. By 2025, China plans to generate 1,200 GW of electricity from renewable sources including solar and wind, with non-fossil fuels accounting for 25% of total energy consumption by 2030.

According to estimates, China’s investments in renewable energy production will account for 30% of worldwide investments over the next several years.

These elements will enable the long-term evolution of China’s  business, which is expected to generate US$ 1.2 billion in absolute dollar value by 2032.