Developments in Renewable Energy Storage Markets in Europe

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Strategic analysis of the developments in Renewable Energy Storage Market in Europe

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Developments in Renewable Energy Storage Markets in Europe

  1. 1. Developments in Renewable Energy Storage Markets in Europe
  2. 2. <ul><li>Agenda </li></ul><ul><li>Segmentation </li></ul><ul><li>Global Hotspots </li></ul><ul><li>Key Industry Challenges </li></ul><ul><li>Market Forces   </li></ul><ul><li>Emerging Technology Roadmap </li></ul><ul><li>Comparative Analysis </li></ul><ul><li>Scenario Forecasts </li></ul><ul><li>Snapshot of Key Players </li></ul><ul><li>Key Research Findings </li></ul>
  3. 3. Suitable Energy Storage Technologies Segmentation Renewable Energy Storage Centralised Decentralised Base load Generation Micro renewable generation Load Levelling Peak Shaving Voltage Regulation Power Quality Renewable Energy Storage Pumped Hydro Flow Batteries Electrochemical Batteries (Sodium Sulfur, Li-ion) CAES Thermal Energy Storage Electrochemical Batteries (Lead Acid, Li-ion, NiCad, Sodium Nickel Chloride) Ultra capacitors Flywheels Fuel Cells Grid Stabilisation Frequency Regulation Renewable Energy Storage Market: Segmentation (Europe), 2009 Source: Frost & Sullivan
  4. 4. Global Hot Spots and Emerging Geographies – Manufacturing concentrated in Asia Source: Frost & Sullivan. <ul><li>North America </li></ul><ul><li>Power infrastructure old and outdated. </li></ul><ul><li>Hub of new energy storage investments. </li></ul><ul><li>Multiple incentives being provided to promote energy storage – Obama Stimulus Plan, tax incentives, etc. </li></ul><ul><li>Most of the R&D centres of Li-ion battery chemistries are located in the United States. </li></ul><ul><li>Asia </li></ul><ul><li>Most of the US/European battery manufacturers have their production facilities in China and other Asian countries. </li></ul><ul><li>Li-ion cell manufacturing is currently dominated by Japanese, Chinese, and South Korean manufacturers that, through strategic partnerships/ subsidiaries, operate in the North American and European regions. </li></ul><ul><li>Majority of renewable energy storage efforts and projects taking place in Japan. </li></ul><ul><li>Europe </li></ul><ul><li>Pioneering region in renewable energy. World leader for wind installed capacity in 2008. </li></ul><ul><li>European grid is of better quality and is also well connected </li></ul><ul><li>Sporadic developments in terms of renewable energy storage but serious developments and grants lacking. </li></ul><ul><li>Germany and Switzerland the hubs for renewable energy storage in terms of projects as well as R&D efforts. </li></ul>
  5. 5. Key Industry Challenges Grid Scale Energy Storage is Limited in Europe Due to Lack of a Suitable Technology Lack of a suitable energy storage technology Need for greater power, lifecycle and reliability Cost of energy storage technology Lack of visibility on who will bear the charges Customer awareness about various chemistries & technologies Unfair Pricing of Fossil Fuels Source: Frost & Sullivan Recycling Issue Key Challenges Renewable Energy Storage Market: Industry Challenges (Europe), 2009-2020
  6. 6. Market Forces Rising Share of Renewable Energy and its Intermittent Nature Driving Demand for Energy Storage Drivers Constraints Drivers Constraints Intermittent Nature of Renewable Energy Rising Share of Renewable Energy Economic Downturn Affecting Investment in R&D and Commercialization Timeline Smart Grid Development High Cost of Energy Storage Cost Effective for Solving Peak Power or Load Levelling Issues Solves the Issue of Accurate Demand-Supply Forecast Deters Expensive Grid Upgrades Rise in cost of renewable electricity to customers Renewable Energy Storage Market: Drivers and Restraints (Europe), 2009-2020 Short term Medium term Long term Source: Frost & Sullivan
  7. 7. 2010 2011 2012 2009 2013 Emerging Technology Roadmap Sodium Sulfur and Li-ion Hold Good Promises for Growth 2014 Post 2015 Source: Frost & Sullivan Molten Salt Li-ion Ultracapacitors Flow Batteries Sodium Sulfur Compressed Air Energy Storage Fuel Cells Flywheels Renewable Energy Storage Market: Emerging Technology Roadmap (Europe), 2009-2020
  8. 8. Comparative Analysis – Centralized Storage Depending on the Grid Requirements, Different Storage Chemistries are Suitable Very High Attractiveness = 5 High Attractiveness = 4 Source: Frost & Sullivan Moderate Attractiveness = 3 Low Attractiveness = 2 Very Low Attractiveness = 1 Total Renewable Energy Storage Market: Comparative Analysis of Storage Technologies (Europe), 2009 Energy Density Temperature/Safety Operating Cost Efficiency Lifecycle Capital Cost Development Stage Total Pumped Hydro Most widely used form of storage 21 Flow Batteries Commercialised but only very few projects implemented in Europe 15 Lithium-ion Research stage 16 CAES Commercialised. 2 plants in operation globally – Germany and US 19 Thermal Storage Molten salt widely used for CSP plants 20 Lead Acid Widely used 14 Sodium Sulfur 165 MW installed capacity in Japan. No projects as yet in Europe 22 Sodium Nickel Chloride Been in existence for over 20 years. MES-DEA only company in Europe manufacturing these batteries 17
  9. 9. Comparative Analysis – Decentralized Storage Ultra-Capacitors though not widely used today are highly suitable for Grid Stabilization and Grid Storage
  10. 10. Scenario Forecasts Energy Storage Installed Capacity Forecasts <ul><li>In the base case scenario the energy storage installed capacity is expected to grow at a CAGR of 64% from 2010 to 2020 </li></ul><ul><li>For the purpose of calculation, the forecast looks only at storage of onshore wind and solar </li></ul><ul><li>The growth rate is expected to become faster post 2015 with further developments in smart grids, electric and plug-in hybrid electric vehicles (PHEVs) and availability of suitable storage technologies with the desired features of high energy density, efficiency, reliability and competitive cost. </li></ul>
  11. 11. Snapshot of Key Participants and their Activities <ul><li>GE is betting big on Sodium Sulfur Batteries. Intends to supply for hybrid trains and buses and then for grid storage </li></ul><ul><li>GE is investing $100m in a new battery production facility in New York </li></ul><ul><li>Expects it to a billion dollar business with a decade </li></ul><ul><li>Manufactures NaS batteries on a large scale </li></ul><ul><li>Has supplied to projects in Japan, US and the Middle East </li></ul><ul><li>A consortium that includes EDF Energy and NGK Insulators, Ltd with MEIDEN and Japan Wind Development (JWD) has signed an initial agreement to develop large scale sodium sulphur NAS battery assets to provide ancillary services in the UK. </li></ul><ul><li>MES-DEA and FIAMM are now part of FZ SONICK </li></ul><ul><li>The ZEBRA (Sodium Nickel Chloride) Batteries are from MES-DEA </li></ul>Sodium Based Batteries
  12. 12. Snapshot of Key Participants and their Activities
  13. 13. Snapshot of Key Participants and their Activities
  14. 14. Snapshot of Key Participants and their Activities Rechargeable Lithium: Quite a few European manufacturers. Majority of them have their manufacturing facility in Asia. Manufacturers developing various types of Li rechargeable batteries that have high energy density, better safety and lifecycle.
  15. 15. Key Research Findings Rise in renewable energy generation along with its intermittent nature is driving the demand for energy storage technologies For centralised storage consisting of large scale generation and load leveling activities sodium sulfur batteries present an attractive option while for decentralised applications, ultracapacitors and even flow batteries could be the preferred technologies The installed capacity for energy storage technologies and batteries in particular is expected to witness a CAGR of around 65% from 2010-2020 in the Frost & Sullivan forecast scenario. Growth in demand for energy storage is expected to rise post 2015 with smart grid development picking up pace and growth in EVs and HEVs. There are quite a few European based lithium battery and ultracapacitor manufacturers but for other technologies many of them are Asian or US based companies. Cost of energy storage technologies such as flow batteries ($2000/KW for vanadium redox) and Li-ion (more than $1100/KWh) remains a challenge and needs to come down substantially for widespread adoption 1 1 2 3 4 5 6

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