How Latest Energy Storage Technology and Trends Can be a Game-Changer for the Renewable Sector

Decarbonisation of the energy sector is an urgent matter, requiring swift responses to avoid irreversible climate changes. Renewable energy sources are expected to be the future of the energy sector, but their intermittency requires the development of efficient, versatile and economical energy storage systems and we believe Lithium Ion is one of the best options to rely on. Hydrogen fuel cells, Energy from plastic and Advance Lithium Ion are the strongest contenders to fill the gap in the energy transition.

ENERGY STORAGE BUILDS LOW- CARBON ECONOMIES

Energy storage technologies are among the most promising tools we have to expand integration of renewables more effectively and with the speed and scale that the climate crisis demands. Some storage technologies are relatively mature, but need to be scaled up, while others are still developing. Greater investment is needed to mitigate risk, reduce costs, and clear a path for expanding use and availability of these critically important technologies.

As we know that Renewable energy has taken off. Wind and solar in particular had grown rapidly, since they can be installed on a small scale and connected to the grid. This has created a number of problems for utility companies while failing to deliver the promised benefits because energy storage technology has not caught up. Let’s look at some of the issues with renewable energy and how to mitigate the same before explaining how advances in energy storage technology will ease these concerns.

These energy storage stations have several benefits:

- Improve Reliability & Resilience: A more efficient grid that is more resistant to disruptions. It helps ensure uninterrupted power is supplied, whenever and wherever it is needed.

- Integrates Diverse Resources: It will store else’s energy when the sun is shining and the wind is blowing, and use it when the opposite is happening. This is a great way to maintain a sufficient load on the grid, as well as providing backup power.

- Environment: Decreased carbon dioxide emissions from a greater use of clean electricity.

Utility-scale batteries, for example, can enable a greater feedin of renewables into the grid by storing excess generation and by firming renewable energy output. Furthermore, particularly when paired with renewable generators, batteries help provide reliable and cheaper electricity in isolated grids and to off-grid communities, which otherwise rely on expensive imported diesel fuel for electricity generation and also contributed towards the development of SDG’s of the UN.

The Growth of Energy Storage

Energy storage systems are often thought of as batteries and peculiarly called lithium Ion, but energy storage can take many forms. The most common is pumped storage hydropower, which is where excess electricity is used to pump water to a higher elevation, and when more power is needed, the water is released, which produces electricity through a turbine. However, water storage isn’t always feasible because of its size and cost.

“The drop of battery prices is a trend that will continue, with prices of lithium batteries expected to drop by 60% by 2030 (source: IRENA). This, in addition to the increased requirements from grid operators and demand response will – undoubtfully – lead to a surge of storage projects, both standalone and coupled with renewable energy projects”.

Globally, battery storage is expected to grow 500 percent by 2025, according to IHS Markit, an energy data analysis and consulting firm. Many factors are propelling the growth of energy storage, including the falling price of lithium, government and regulatory policy changes, advancement in technology, and participation in wholesale electricity markets. In today’s world energy storage is now reaching the point where it is valuable on its own as a way to modernize and stabilize the grid, regardless of energy generation sources.

Developers Should Prepare for Storage

Energy storage is increasingly lucrative, because of its growth and acceptance as a major part of the grid. Energy storage allows the storing party to meet energy demand when that energy demand outweighs supply and prices are better for producers. Accordingly, wind and solar developers are increasingly adding small battery storage projects to wind and solar farms, so that they can take advantage of opportunities to sell energy at optimal prices.

It is important for developers to plan for and contract for the ability to construct storage facilities onsite, specifically when siting their solar and wind projects, even if storage isn’t contemplated at the outset of construction. Alternatively, for already existing wind or solar farms, producers should consider additional construction of storage systems that can tie into their current site to better provide for continuous energy output. Indian energy demand set to grow by more than 60% (Stated Policy Scenario) by 2030 says IEA, ie an additional 110-112 GW (peak demand).

We trust and understand some of the trend predictions in the year 2021:

- More renewable energy in under-resourced communities

- More companies aim to be 100% renewable at all times

- Storage will be added to PPA portfolios.

"The mass deployment of storage could overcome one of the biggest obstacles to renewable energy — its cycling between oversupply when the sun shines or the wind blows, and shortage when the sun sets or the wind drops. By smoothing imbalances between supply and demand, proponents say, batteries can replace fossil fuel “peaker” plants that kick in for a few hours a day when energy demands soar”.

“Experts around the world suggest and say that widespread energy storage is key to expanding the reach of renewables and speeding the transition to a carbon-free power grid”.

While energy storage is thriving in high-value markets such as Australia, US, MENA and some parts of south east Asia, battery prices still need to come down more to reach large-scale global deployment.

The NEED - The Future Business Model coupled with Technology:

1.The Use of AI – Artificial Intelligence, IOT and Secure data mining – Big Data

- The leading trend in optimizing energy distribution and storage utilizing Artificial Intelligence will become Energy Management Systems (EMS) connected to Internet of Things (IoT). The IoT allows for remote control of systems, consumption monitoring, data collection and analysis, and, with the help of AI, decision making: where to send energy, which generating capacity to switch on and off, how much energy to store, etc. New systems will utilize smart sensors and meters to collect terabytes of information, and exploit massive cloud computing capacity and AI algorithms to process vast data into usable decisions.

2.Reinvent Battery Business Models: New Battery Business Models Emerge at Both Utility and Residential Scale

- Energy storage is growing rapidly as falling costs and maturing technology are making use cases more economical, from ancillary grid services to on-demand power. Solar-plus-storage cost synergies and operational efficiencies are boosting colocations and supersized batteries. Repowering opportunities are also increasing the attractiveness of adding batteries to wind projects. Additional drivers of utility storage deployments include capacity shortfalls and state storage mandates, while residential drivers include resilience concerns and revenue opportunities.

3.Fortify Disaster Readiness: Supply Chain Strategies – Onshoring and Digitalizing Supply Chains

- Review of supply chains are likely to become a priority for stakeholders as the renewable energy industry strives to thrive in the post-pandemic era by diversifying outside of China and/ or manufacturing trying to set up their manufacturing in India. Changes in trade tariffs and in the production and investment tax and other allowances could further accelerate on shoring. Stronger policy measures are expected in 2021 to safeguard technology and data from cyberattacks, and to reduce our dependence on other countries for strategic materials. Two sub-trends are likely to accelerate next year. First is the diversification of supply to build resilience. Second is the greater deployment of digital technologies at both ends of developers’ supply chains.

Renewable Energy Likely to Experience Significant Growth in Coming Year

We trust that this year may bring increased deal making, new hybrid battery storage business models, faster deployment of offshore wind projects, and a more resilient renewables industry supply chain.

Looking ahead, we can expect to see organizations increasingly look at how different energy technologies can work together to drive maximum value. This approach can accelerate decarbonisation plans. But it can also increase resilience against market and cost volatility, alongside increases in carbon pricing and environmental levies.

- A.K. Shukla, Founder, Sanvaru Technology