What are the market driving factors for battery energy storage?
Driving factors of the battery energy storage market 1. Cost and performance improvements Various forms of energy storage have existed for decades. Why is battery energy storage currently the leader? The most obvious answer is the decrease in cost and the improvement in performance, which is particularly prominent in lithium batteries. At the same time, the rise of lithium batteries also benefited from the ever-expanding electric vehicle market. 2. Grid modernization Many countries are implementing grid modernization plans to improve resilience to severe weather events, reduce system outages related to aging infrastructure, and improve the overall efficiency of the system. These plans usually involve the deployment of smart technologies within established power grids to enable two-way communication and advanced digital control systems, and to integrate distributed energy. The development of battery energy storage is inseparable from the efforts made to modernize the power grid. The digital power grid supports processing consumers to participate in smart system configuration, predictive maintenance and self-repair, which paves the way for the implementation of a tiered tariff structure. All this has opened up space for battery energy storage, prompting it to create value by adding capacity, peaking operation or improving power quality. Although smart technology has existed for some time, the emergence of battery energy storage helps to tap its full potential. 3. Global renewable energy movement Extensive renewable energy and emission reduction support policies are also promoting the global use of battery energy storage solutions. The critical use of batteries in offsetting the intermittency of renewable energy and reducing emissions is obvious to all. All kinds of power users are chasing clean energy, and its degree and prevalence are still on the rise. This situation is particularly evident in companies and the public sector. This indicates that renewable energy can continue to develop, and may continue to deploy battery energy storage to help integrate more distributed energy sources. 4. Participating in the wholesale electricity market battery energy storage can help balance the grid connected to any power source and improve the quality of power. This shows that battery energy storage has an increasing opportunity to participate in the wholesale electricity market on a global scale. Almost all the countries we analyzed are transforming the structure of their wholesale markets, striving to create a place for battery energy storage for their supply capacity and auxiliary services such as frequency regulation and voltage control. Although these applications are still in their infancy, they have achieved varying degrees of success. Authorities in various countries are increasingly taking actions to reward battery energy storage for its contribution to balancing grid operations. For example, Chile’s National Energy Commission drafted a new regulatory framework for ancillary services that recognized the contribution that battery energy storage systems can make; Italy also opened its ancillary service market as a pilot for renewable energy and energy storage projects and introduced it Part of the work done for comprehensive regulatory reform. Disclaimer: Some pictures and content of articles published on this site are from the Internet. If there is any infringement, please contact to delete. Previous article: Which applications of lithium-sulfur batteries?