future grid connected energy storage 2013 edition

8/11/2019 Future Grid Connected Energy Storage 2013 Edition

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IHSSolar Solutions - Prospectus

The Future of Grid-Connected Energy Storage2013 Edition

Sam Wilkinson, Abigail Ward December

2013 IHS

www.ihs.com

An Analysis of the Business Case and Market Potential for Energy Storage in the Grid

The growing demand for clean, reliable and low cost energy is putting ageing electricity-gridsunder increasing levels of pressure. Electricity networks were constructed with limitedmaximum capacities which, in some cases, have already been reached. Furthermore, they wereintended to function with conventional generators that operate at a predictable level, however,the energy mix is now diversifying as fluctuating renewable generators have become costcompetitive to these traditional sources.

The reliability of the grid is decreasing due to these instabilities, and electrical blackouts arebecoming an increasing threat. Whilst upgrading and extending electricity grids are apossibility for some utilities, this can often be extremely costly and impracticable. As a result,energy storage solutions are being developed to manage the impact of changes in theelectricity industry. In addition to solving these issues, storage also has the potential toincrease the financial gain of the operator in some grid-connected applications, and enable

huge advances in micro-grid applications where storage is a necessity.

IHS is now producing the first detailed analysis of the business models and market potentialfor the deployment of grid-connected energy storage. Based on its expertise in the energy,power and renewables markets, this report will provide critical data and insight forunderstanding the development of this exciting new market.

Early Purchasers are invited to give input and help develop the scope of this report.

Key Issues Addressed

What are the business cases for grid-connected energy storage? Will these be

driven by regulations/policies mandatingstorage or by the promise of financial

benefits to the energy storage systemowner?

What are the regulations/policiesmandating grid-connected energy storageand where are these likely to beintroduced?

Who will deploy energy storage systemsand will own them? Who will receive the

benefits?

What services can an energy storage

solution provide in a grid-connectedapplication and which grid interconnectionlocations will require these functions andtherefore drive deployment?

How much energy storage will be installedin each key region?

What storage technologies will be installedin grid-connected applications?

What are the barriers for the adoption ofgrid-connected energy storage?

Applicable To

Existing suppliers of energy storagecomponents and products that can

capitalize on new opportunities New suppliers to this industry

including start-up companies who arelooking to gain an overview of theindustry and plan their entry into thismarket

Utilities and policy makers looking tounderstand the benefits and impacts ofstorage

Renewable developers looking tomanage their projects by incorporatingstorage

Energy storage system integratorslooking to understand storagerequirements and applications

Investors looking to understand thecurrent and future market conditionsof the industry

Actuals and Forecasts

Frequency, Time Period

5-Year annual forecast (2012-2017

Measures Energy Storage Installations by Po

Rating (MW and GW) Energy Storage Installations by

Storage Capacity (kWh and GWh) System Pricing ($/W and $/kWh) Revenues ($)

Grid InterconnectionLocations Covered

Behind-the-Meter Micro-Grid In the Grid Co-located (Conventional) Co-located (Renewables)

Regions Covered

EMEA: Germany Italy UK Rest of Europe South Africa Rest of Africa Rest of EMEA

Americas: USA Canada

Central and South America

Asia: China Japan India Australia Rest of Asia

Technologies Covered

Batteries (Li-Ion, Lead-Acid, SodiuNickel Chloride, Sodium Sulphur,Flow)

Mechanical Storage (Flywheels,Compressed Air, Pumped Hydro)

Other (Ultra Capacitors, Power-to-

Gas)

Business Cases

Analysis of the various regulation orfinancially-driven business cases thatpotentially be used to drive the energstorage market

Supplier Base

Analysis of suppliers active in the mafuture entrants and sales channels us


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The Future of Grid-Connected Energy Storage (Sam Wilkinson, Abigail Ward)

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REPORT CONTENT

Note: The research will provide detailed information on the subjects listed here. However, the final scope may changeslightly, and therefore other issues may also be addressed.

The Drivers for Grid-Connected Energy Storage

Functions of Grid-Connected Energy Storage

Energy storage will be applicable in a number of grid-connected applications, providing functions ranging from fast-response charging/discharging to compensate for fluctuations in the output of renewable generators and regulate theirinjection into the power grid, to storage of large amounts of electricity for reserve energy supplies and increasing availablecapacities for conventional generators.

The report will look in great detail at all types of functions that energy storage can provide.

Key Questions to be Answered:

Which functions can storage provide? Which are the requirements of the energy storage solution to provide these functions?

Which technologies are suitable to provide these functions? Which locations in the electricity-grid will require these functions? Which regions will require these functions?

Business Cases of Grid-Connected Energy Storage

As activity in the grid-connected energy storage market moves away from project demonstrations to commercialinstallations, there is still much uncertainty surrounding the business models that will drive the grid-connected energystorage market. Using analysis and forecasts contained in this report, and using case studies as examples, IHS will presentanalysis of typical business models, highlighting who will benefit from the deployment of storage, and regions andapplications where the model has potential.

Key Questions to be Answered:

Which interconnection locations will energy storage be installed? Which regions will lead deployment of energy storage? Who will install energy storage systems? Who will own energy storage systems? Who will operate energy storage systems? What are the financial benefits of an energy storage system? What are the regulations/policies mandating the installation of energy storage? Where are these regulations/policies likely to be introduced? Who will benefit from the installation of an energy storage system?

The Market Barriers for Grid-Connected Energy Storage

This report will explain what potential barriers the energy storage market may face, including energy storage system costs.


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Forecasts and Statistics

The report will provide detailed analysis of the energy storage market and where systems are likely to be installed in theelectricity-grid. It will assess the potential size of each market and forecast how much storage (in both power (MW) andcapacity (MWh)) will be installed in each segment in the coming years.

Regions

Due to the wide range of functions that energy storage can provide in grid-connected applications, the role of energystorage will vary significantly by region depending on a huge number of factors. Forecasts will be provided for each keyregion.

Storage Technology and Costs

Various technologies for storing energy and electricity are under development. Technological advancements and costs willbe a huge factor in determining which applications they are likely to be deployed in. The report will provide analysis andforecasts for the cost of these technologies to assess to the economic feasibility and potential of energy storage connectedto the electricity-grid.

Statistics Presented

IHS intends to present forecasts and analysis for the following metrics:

Competitive Environment and Supplier Base

A wide range of suppliers are likely to benefit from the rapid adoption of energy storage. New markets will be opened forexisting storage component suppliers who are already beginning to develop and launch new products. Additionally, a largenumber of start-up companies, specifically targeting these grid-connected energy storage applications with their products,are emerging and are starting to become commercially active in this market. IHS will provide full analysis of the types ofsuppliers typically involved in the market, with analysis of their typical strategies and routes to market.

Statistics Presented2012 to 2017

(MW, MWh, $/W, $/MWh)

ByInterconnection

Location

Micro-Grid

Behind-the-Meter

In the Grid(transmission, distribution, substation)

Co-Located (Conventional)

Co-Located (Renewables)

EMEA

GermanyItalyUKRest of EuropeSouth AfricaRest of Africa

Rest of EMEA

Americas

USACanadaCentral & South America

Asia

ChinaJapanIndiaAustraliaRest of Asia

Batteries

Li-Ion

Lead-AcidSodium Nickel ChlorideSodium SulphurFlow

Mechanical

Flywheels

Compressed Air

Alternative Technologies

Pumped HydroUltra CapacitorsPower-to-Gas

EachInterconnection

Location

Analysed:

By Region

By Technology


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Source: IHS Date: Dec-13

Example Figure - Co-Located (Renewables) Energy Storage by Technology

Storage Capacity (MWh)

0

20

40

60

80

100

120

140

160

180

2012 2013 2014 2015 2016 2017

Other

Mechanical

Flow

Sodium Sulphur

Sodium Nickel Chloride

Lead-Acid

Li-Ion

2012 2013 2014 2015 2016 2017 SUM (12-17) CAGR (12-17)

Behind-the-Meter Revenues ($M) 100 100 100 100 100 100 100 10.0%

Installations (MW) 100 100 100 100 100 100 100 10.0%

Price per Watt ($/W) 100 100 100 100 100 100 100 10.0%Storage Capacity (MWh) 100 100 100 100 100 100 100 10.0%

Storage Price ($/kWh) 100 100 100 100 100 100 100 10.0%

Micro-Grid Revenues ($M) 100 100 100 100 100 100 100 10.0%


Price per Watt ($/W) 100 100 100 100 100 100 100 10.0%

Storage Capacity (MWh) 100 100 100 100 100 100 100 10.0%


In The Grid Revenues ($M) 100 100 100 100 100 100 100 10.0%


Price per Watt ($/W) 100 100 100 100 100 100 100 10.0%



Co-Located (Renewables) Revenues ($M) 100 100 100 100 100 100 100 10.0%


Price per Watt ($/W) 100 100 100 100 100 100 100 10.0%



Co-Located (Conventional) Revenues ($M) 100 100 100 100 100 100 100 10.0%


Price per Watt ($/W) 100 100 100 100 100 100 100 10.0%



Total Revenues ($M) 100 100 100 100 100 100 100 10.0%


Price per Watt ($/W) 100 100 100 100 100 100 100 10.0%



Source: IHS Date: Dec-13

Example Table - The World Market for Grid-Connected Energy Storage by Interconnection Location

Installations (MW), Price per Watt ($/W), Storage Capacity (MWh), Storage Price ($/kWh)

Example Tables

NOT REAL DATA


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RESEARCH METHODOLOGY

EARLY PURCHASE PROGRAM

Tailor the specification of the research to meet specific market research requirements (not required). Receive advance access to market estimates and forecast data. Gain immediate access to results upon report completion. Benefit from a reduction in report price.

There are no additional costs or commitment associated with the early purchase program.

REPORT PROCESS & TIMESCALES

Report Process Timescales

Key Issue Definition & Early Purchaser Enrollment

Expiration of Early Purchase Price

Agree Specification With Early Purchasers

Conduct Interviews & Perform Secondary Research

Develop Report

Issue Prelim Findings & Coordinate Discussion with Early Purchasers

Publish Report

July - August 2013

October 2013

August 2013

July - October 2013

October 2013

November 2013

December 2013

About IHS (www.ihs.com)

IHS (NYSE: IHS) is the leading source information, insight and analytics in criticareas that shape today's business landscapBusinesses and governments in more th165 countries around the globe rely on tcomprehensive content, expert independeanalysis and flexible delivery methods of IHto make high-impact decisions and devestrategies with speed and confidence. IHS hbeen in business since 1959 and becamepublicly traded company on the New YoStock Exchange in 2005. Headquartered Englewood, Colorado, USA, IHS is committ

to sustainable, profitable growth and emplo6,700 people in 31 countries around the worl

For More Informatio

Sam Wilkins+44 (0) 1933 4022

[email protected]

AbigailWa+44 (0) 1933 4022

[email protected]

Learn More About Solar Solutions

IHS Solar solutions combines the products,services, and expertise from three leadingresearch companies and provides forecasts formarket demand, technology, and supply chainanalysis to advance clients strategies in globalsolar markets.

Lead Analysts

Sam Wilkinson Research Manager

Sam Wilkinson is a research manager for thesolar group at IHS, leading its research on thePV inverter, BOS and energy storage markets,and led IHS first report on the market for energystorage in PV systems.

During his time working within the solar group,Sam has also been responsible for researchingthe PV module and polysilicon supply chain,working closely with leading global suppliers todevelop detailed analysis on these markets.

Sams analysis and commentary is regularlypublished by leading PV industry media, andalso the global press. He has also presented atleading industry events and conferences.

Abigail Ward Analyst

Abigail Ward is a Market Analyst who works

within IHS Solar research group. Abigail is

responsible for producing IHS Solar Solutions

first detailed energy storage report and is

helping to expand IHSproduct offerings on this

market sector.

UnderstandClient Needs

Send Proposal

to Suppliers

Agree Spec.with EarlyPurchasers

InterviewSuppliers,

Utilities, End-Users,

Developers

CollateSecondaryResearch

Collate

In-House Data

SendPreliminary

Data to EarlyPurchasers

DevelopReport

DeliverFinal

Report

OngoingAnalyst &CustomerDialogue

future grid connected energy storage 2013 edition

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