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Lithium-Ion for Stationary Applications – What’s in Store?


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Frost & Sullivan analysis: Lithium-Ion for Stationary Applications – What’s in Store?

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Lithium-Ion for Stationary Applications – What’s in Store?

  1. 1. Lithium-Ion for Stationary Applications – What’s in Store? Suba Arunkumar, Industry Manager Energy & Power Systems Group March 17, 2010
  2. 2. Focus Points Overview of Lithium-ion Industrial Lithium-ion - Overview Emerging Markets Role and Importance of Battery Energy Market – Overview GDP Growth and Power Demand Content Countries Involved Supportive Factors Market Trends Participants Conclusion 2
  3. 3. Overview of Lithium-Ion • All are familiar with the distinct advantages of lithium-ion batteries • These distinct advantages make lithium-ion chemistry to increase end-user applications by replacing existing chemistries • Expensive than other chemistries • Safety concerns • Light weight • High Energy Density • Better Efficiency and performance • No memory effect • Long cycle life 3
  4. 4. Overview of Industrial Lithium-ion Data collection equipment Military Equipment Medical Equipment Cordless power tools 4
  5. 5. Emerging Markets Automotive applications began in 2009 Stationary applications are in its initial stages, with high potential for growth 5
  6. 6. Role and Importance of Battery Battery bank is the integral element in all stationary application. Lithium-ion batteries currently used in low- and Medium-power stationary applications. This chemistry reduces weight and foot print of the equipment. Input Static Charger Inverter Switch Output Battery Bank • Performance of a backup equipment is largely dependent on the performance of the battery. • Improvement in battery chemistry and technology could enhance the backup equipment performance and its life cycle • Lithium-ion batteries offer the advantage of being environmentally friendly 6
  7. 7. Energy Market - Overview 5 4.5 4 3.5 Q uad rillio n Btu 3 2.5 2 1.5 1 0.5 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 Year Biomass Solar and Wind Growth in renewable energy production capacity is evident from 2008 to 2013. This directly influences the battery market for storage Source: U.S Dept of Energy 7
  8. 8. Countries Involved Germany Spain Canada Ireland U.K. Denmark U.S. 8
  9. 9. GDP Growth and Power Demand GDP Growth Power Demand Year • GDP growth is directly proportional to increase in power demand. • Rate of growth is based on each geographic region. • Currently, China is leading other countries such as Australia and India in terms of increase in power demand. • Similarly, new installations to increase power generation is high in China, compared with that of other countries. • Shortage of power generation leads to increased demand for backup and stationary equipment. 9
  10. 10. Supportive Factors Government initiatives • The stimulus bill announced in 2009, has a direct and indirect influence in the energy storage technology market Inherent features • The inherent features of lithium-ion chemistry favors energy storage applications, especially in the renewable energy sector using PV cells, wind energy and the like Potential in stationary utility energy storage • Although in 2008 and 2009, the installations are very few, many participants are involved in large installations. By 2015, more than 1000MW of energy storage installations are expected by this chemistry Dynamic and competitive environment among participants • All prominent lithium-ion start-ups are involved in installing an energy storage unit in the developed countries. This healthy competition drives growth in this market. 10
  11. 11. Market Trends Lithium-ion Megawatts of Installed Energy Storage Sodium % Sulphur Lead Acid 00 >1 R CAG Lead Acid Sodium Sulphur Lithium-ion 2009 Source: Frost & Sullivan 2015 11
  12. 12. Market Trends Suitable for UPS and grid support applications Discharge Time at Rated Power Lithium-ion Lead Acid Suitable for UPS and grid support applications up to 10MW 10KW 100KW 1MW 10MW Source: Frost & Sullivan 12
  13. 13. Participants Source: Frost & Sullivan 13
  14. 14. Conclusion • Lithium-ion batteries for stationary applications is an emerging market • Currently, low- and medium-power equipments use cylindrical lithium-ion cells for this application • However, large format lithium-ion batteries being used for stationary applications is yet to gain prominence • Renewable energy sources such as wind and solar power generation are likely to employ more of lithium-ion battery packs for energy storage • This market is likely to make significant impact and revenues in the next couple of years. • By 2015, the market is likely to generate more than $500 million by revenues for this application • In short, the market has a long way to go to replace the existing lead acid batteries in the stationary application 14
  15. 15. Next Steps Request a proposal for a Growth Partnership Service to support you and your team to accelerate the growth of your company. ( 1-877-GoFrost (1-877-463-7678) Join us at our annual Growth, Innovation, and Leadership 2009: A Frost & Sullivan Global Congress on Corporate Growth, September 2010, Silicon Valley, California ( Register for the next Chairman’s Series on Growth: Accelerating Growth through Vertical Market Expansion: A How-To Primer Tues, April 6, 2010, 2 pm ET ( Register for Frost & Sullivan’s Growth Opportunity Newsletters and keep abreast of innovative growth opportunities ( 15
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  18. 18. For Additional Information Jake Wengroff Diana Bragg Global Director Sales Manager Corporate Communications Energy & Power Systems (210) 247-3806 (210) 247-3879 Vishal Sapru Industry Manager Energy & Power Systems (210) 348-1016 18