SBI Energy: Market Insights, Opportunities &Trends

Energy Storage Technologies in Utility Markets Worldwide from leading energy industry market research publisher SBI Energy gives you the tools to:

• Assess the state of your industry and the trends that are impacting it
• Identify exciting new opportunities and evaluate growth potential
• Review potential partners or acquisition targets

Utilities grapple with excess energy lost in off-peak times and energy shortages during peak times.

Solution: Smart grid energy storage

As utilities strategize the integration of renewable energies into the electric grid, energy storage technologies ante-up.

• $34 million in start up funding for an energy storage research hub is proposed in Obama’s 2011 budget planning.
• Companies are launching new energy storage products aimed at tapping into the growing market
• The global utility sector energy storage market is expected to grow by 15.8% per year to over $10 billion in 2015.

Energy Storage Technologies in Utility Markets Worldwide from leading energy industry market research publisher SBI Energy covers:

• Applications in which energy storage solutions can be leveraged within the utility sectors

• The electric grid and its operations, identification of opportunities for energy storage solutions

• Technologies including: pumped hydro storage, CAES, electrochemical capacitors, flywheels, and batteries

• Battery technologies including lead-acid, lithium-ion, molten salt, and vanadium redox and zinc bromide flow batteries

• SMES, or Superconducting magnetic energy storage, thermal storage and vehicle-to-grid

• Global market sizing for energy storage technologies to 2015 are provided.

(Source: sbienergy.com)

O Thank Heaven it’s 2011
SBI Energy

The flurry of predictions made at the end of 2010 for the clean energy sector has created an exciting new buzz for 2011. Significantly advancing the U.S. toward a clean energy economy, 2011 will likely bring a spike in financial investing - now that Wall Street has claimed to have ‘figured out’ clean energy, along with an extension in tax credits that encourage more businesses to adopt ‘green’ practices and the creation of thousands of ‘green’ employment opportunities. Meanwhile, the clean energy manufacturing industry can expect to receive an additional $2.5 billion in funding in 2011 from the Recovery Act (ARRA). And, letting the good news roll, the global clean power sector is forecasted to see growth this year and continue its upward trend straight through 2020 - ultimately becoming a $2.3 trillion industry.

In just 18 months the U.S. spent more than $51 billion in public funding on clean energy project initiatives, research science, installations and infrastructure.  Not enough to approach sustainability, but a significant play nonetheless, as many countries have made.

It’s also reported that U.S. is on track for its 2012 goal of doubling its renewable generation capacity.  How old is that goal, anyway?  What are our new goals?  Where are the new clean energy policies and standards businesses need to move forward in their commitments and goals? 

 As the American public, we know a clean economy can’t arrive bagged and sterile in a flash while we wait.  Our order requires recipes and ingredients yet to be known.  It will be years in the making, always in the unfolding if we are wise, rather than slacking again to this level of paucity by negligence.  So let’s celebrate what this bright New Year will bring in terms of building blocks for our future.

 SBI Energy believes the power players are in the following sectors:

•             Energy storage

•             Rare earth minerals impact on renewable power generation

•             Industrial equipment manufacturing, components

•             Carbon and coal treatments, technologies

•             Nuclear power applications development

•             Substation automation

•             Smart grid advancement

 2011 is set to advance the clean energy industry. We stake our research on it. Cheers to progress and patience!

(Source: sbienergy.com)

Two years after the enactment of ARRA, indications are strong that the Recovery Act is aiding the U.S. in attaining its goal of doubling renewable generation capacity over the next two years.

Photo: treehugger.com

Renewable energy has taken hold in the U.S. with installations of new wind turbines and solar panels occurring regularly.  The U.S. is making significant progress toward attaining its goal of doubling renewable generation capacity over the next two years, due in large part to support from the American Recovery and Reinvestment Act (ARRA) introduced in 2009.

ARRA investments are funding research projects to develop next generation renewable energy technologies, such as solar thin films and new wind turbine designs that will create a cost competitive alternative to electricity currently generated from coal or natural gas power plants while simultaneously creating long-term economic market growth. Consider the following examples:

·          Aided by ARRA investments, The Council of Economic Advisors (CEA) reports that domestic manufacturing capacity for solar photovoltaic (PV) modules is forecasted to grow from <1 GW per year in 2008 to nearly 4 GW per year in 2012.

·          ARRA investments are accelerating the rate of innovation in solar photovoltaics and according to the CEA, the new technology will drive down the costs of solar panels over the next five years; possibly by 50%.

·          U.S. wind power capacity grew 40% in 2009 over the prior year, despite weak economic and investment conditions. In July 2010, the CEA reported that ARRA was responsible for approximately 6 GW of wind capacity installation that might not otherwise have occurred in 2009. 

·          U.S. manufacturing capacity for components such as gearboxes, generators, and large casted steel parts, has lagged behind actual demand. The 48C Manufacturing Tax Credit program awarded $346 million in tax credits to 52 wind manufacturing projects to facilitate additional U.S. manufacturing capacity to ensure the U.S. is able to supply a growing domestic market through domestic production.

·          An April 2010 U.S. Geothermal Energy Association (GEA) survey indicated a 26% increase in new projects under development in 2009 and concludes that the stimulus funding played an important role in propelling geothermal growth amidst recessionary economic conditions.

Overall, the Energy Information Administration (EIA) estimates that U.S. renewable generation capacity will increase 32% more than without ARRA support – reaching 155 GW in 2015. Two years after the enactment of ARRA, indications are strong that the Recovery Act is aiding the U.S. in attaining its goal of doubling renewable generation capacity in the next two years.

-SBI Energy

(Source: sbienergy.com)

Market drivers for fuel cells include a desire for energy independence and security, and a commitment to global climate change and air quality. But, durability and performance standards must be met first to compete with common technologies such as batteries and internal combustion engines. Next, the infrastructure for the fuel of choice must be in place to support wide-spread implementation of fuel cell technology. Finally, there must be a critical level of public acceptance and demand for the technology.

SBI research indicates that the fuel cell market will reach $598 million in 2010, then grow to $1.22 billion by 2014, a CAGR of 20%. At the same time, unit sales will increase by a CAGR of 37%.

More on Fuel Cell Technologies Worldwide»

Industry experts offer a wide range of predictions about which sectors will win the lion’s share of the fuel cell market in the coming years, but stationary applications has been mentioned as one of the most promising options.

SBI Energy estimates that the small stationary sector has historically been the leader in the industry since 2005. But niche transport (forklifts and other materials handling vehicles) was a break-out market in 2008 and 2009, and portable electronics are expected to gain momentum in the coming years, as well.

These experts are less certain about the future of stationary applications in residential and small commercial settings. Because the electric grid reaches practically everyone and electricity is cheap, there is little that seems to compel residential users to make the switch to fuel cell power.

While the industry watchers may differ in their predictions of the market size and winning applications, most agree that in 2010, we are on the cusp of a breakthrough in the fuel cells sector.

SBI research indicates that the fuel cell market will reach $598 million in 2010, then grow to $1.22 billion by 2014, a CAGR of 20%. At the same time, unit sales will increase by a CAGR of 37%.

Looks like ‘fuel cell’ will become a household phrase over the next few years.

More on Fuel Cell Technologies Worldwide»

The energy storage market is benefitting from the convergence of several macro trends and is experiencing rapid growth. Nations around the world are actively investing in the expansion and upgrade of electric grids to meet current and future demand. Technologies such as distributed and renewable generation, microgrids, and smart grid technologies are further highlighting the necessity for and benefits of energy storage systems in the utility sector. Concurrently, significant investments are being made to improve the cost/performance and commercial viability of constituent technologies. The market for several energy storage technologies is expected to experience dramatic growth over the next several years.

Role of Energy Storage in Renewables Integration

Globally, the percentage of electricity generated through the use of renewables is expected to increase from 17% in 2007 to over 23% by 2035. The share of renewable power generation in the US is also expected to rise over the period. Much of the electricity produced from these renewable sources will be generated by non-utilities and even individuals. Furthermore, the power generated from renewable energy sources is highly variable and subject to intermittent operation due to the inherent vagaries of sources such as wind and solar. Thus, energy storage solutions are necessary to maximize the generation of electricity from these sources and to transmit it to where it is needed, when it is needed.

Due to these factors, it is estimated that only about 15% of US power needs can be supplied by renewable energy sources unless the electricity produced from these sources can be stored for later use. It has also been estimated that more than $340 billion will need to be invested in power storage capabilities to raise the supply of power from renewable sources by just another 5 percentage points from 15% to 20%.[1] As adoption of wind and other intermittent and variable renewable energy generation increases in nations around the world and exceeds the 15% of total electricity generation threshold, the use of energy storage solutions will become a pre-requisite to further integration of renewable energy.

Energy Storage in Microgrids

Maintaining, expanding and upgrading the electric grids to meet the growing demand for electricity is expected to cost trillions of dollars over the next twenty years. This assumes, of course, that the manner in which electricity is produced and delivered will remain basically the same as it has for over one hundred years, i.e. large centralized generation in remote areas, connected to distant population centers through hundreds of miles of transmission and distribution infrastructure. An alternative solution gaining traction is the microgrid.

Microgrids function in a manner similar to the large electric grid but on a much smaller and localized scale. Microgrids are electric grids for small areas or even single buildings. Given their emerging nature, and the fact that microgrids are often custom designed for specific end-user requirements, several varying definitions and implementations exist. There is, however, growing agreement that microgrids must minimally incorporate distributed generation and energy storage solutions that are proximal to the point-of-use. While most microgrids are expected remain connected to the larger grid, they are also designed to be self-sufficient and thus capable of disconnecting or “islanding”.

The ability of microgrids to incorporate distributed renewable energy generation and to avoid the cost and poor reliability of long distance transmission infrastructure is a significant driver of microgrid adoption. Since most microgrids leverage storage as an essential component, growth in microgrids is also expected to drive further growth in energy storage systems, and vice versa.

[1] Clayton, Mark, “How Enormous Batteries Could Safeguard The Power Grid”, The Christian Science Monitor, March 22, 2009

Energy Storage Technologies in Utility Markets Worldwide