Battery Storage: The New Energy Frontier

Market opportunity

According to GTM Research, distributed energy storage to reach 720 MW by 2020• Equals a 34% cumulative annual growth rate• Some experts contend actual capacity may be much higher• Bloomberg finds that batteries address 93% of energy storage• Global energy-storage market estimated to be $30 billion• 101 battery-based energy storage systems in operation• 53 battery-based energy storage systems under construction

Substantial growth based on current trends

• EIA forecasts solar and wind power capacity to grow 59% from 2012-2030

• EPA’s target to reduce CO2 emissions by 30% suggests more battery-based energy storage likely

Renewable energy growth

Source: Dennis Schroeder/ NREL

Utility-scale solution -- Advancion

• AES recently proposed a 100 MW storage project in Northern Ireland (possibly operational by Q2 2015)

• Currently deployed in Ohio, West Virginia, Chile

• AES claims over 1,000 MW of energy storage in development

Current and future deployments

Source: AES

Utility-scale solution -- Advancion

• Systems cost about $1 million per MW with a 4-megawatt- hour discharge capability

• Industry experts see cost as lower than was thought possible• Battery-based grid energy storage using lithium-ion batteries• Can tap into capacity from natural gas, solar, and wind power

sources

Developed by global energy storage leader The AES Corp.

Residential solar market

• Leading residential, commercial, and utility-scale solar developer

• Partnering with KB Homes to include battery storage with all solar homes in California

SunPower

Source: SunPower

Residential solar market

• Piloting energy storage projects in Germany and Australia

• Partnered with ZBB Energy Corp. to demonstrate combining PV with zinc bromine flow battery storage

SunPower

Commercial solar market

• DemandLogic solution provides Tesla Motors battery backup

• Available to new solar customers in select California, Connecticut, and Massachusetts markets

SolarCity

Source: SolarCity

Options besides lithium-ion

• Notrees Battery Storage Project is country’s largest battery storage project at a wind farm

• Provides storage for 153 MW wind farm

• 24 other lead acid energy storage projects in operation throughout the U.S.

• 4 projects under construction

Lead acid batteries

Source: Duke Energy

The Foolish conclusionBeginning of a battery boom•The next phase of the renewable energy revolution is the adoption of battery-based energy storage• Battery storage addresses a major drawback of utility-scale solar and wind power: periods of intermittent generation• Battery storage also benefits residential and commercial consumers• Only obtainable in select markets, residential and commercial battery storage offerings will undoubtedly reach widespread availability in domestic and global markets

The Foolish conclusionBe bullish on battery-based storage• Bloomberg sees batteries as the fastest growing energy storage solution•53 out of 57 projects in development are using batteries•The U.S. currently has 238 operating storage systems – 101 use batteries

An Energy Tax “Loophole”?