5 Energy Storage Systems for the Electrical Grid
Most of our articles about green technologies often end with the same complaint: Where are the greenbacks? Profitability in the low-carbon, environment-first economy remains largely elusive. For example, everyone is suddenly interested in carbon capture after Elon Musk backed a $100 million XPRIZE for the best solution for mitigating emissions. But, as we’ve pointed out before, the technology is still far from being economically feasible without heavy subsidies and incentives (like a $100 million XPRIZE). While wind and solar renewable energy remain the backbone of the green economy, even these technologies continue to require environmentally friendly policies and regulations to prop up installations. A paper published last year argued that for solar and wind to become economically sustainable, we will need to deploy new grid technologies such as energy storage systems.
The Value of Energy Storage Systems
Why are energy storage systems for the grid important? Simply put, storage allows energy produced by renewables (as well as good old-fashioned fossil fuels) to be saved at times when prices are low and sold when prices are higher. Another advantage specific to renewables is that the power generated by solar and wind is highly variable, so it’s important to capture and store energy when the sun is shining and the wind is blowing. Storing energy also extends the life of energy infrastructure.
In addition, many energy storage systems are maturing and economizing far more rapidly than technologies like carbon capture.
Types of Energy Storage Systems
Last year, we profiled three energy storage companies that went public through reverse mergers with special purpose acquisition companies (SPACs). The article noted that almost all energy storage systems today use pumped hydroelectric storage (PHS), which involves shifting water between higher and lower reservoirs. Another energy storage system that we wrote about in the past is compressed air energy storage (CAES), which as the name implies, uses compressed air to store energy.
While both PHS and CAES are large-scale technologies with discharge times of tens of hours of power for up to one gigawatt (GW), they are geographically limited. Battery-based energy storage systems can be deployed anywhere. The main drawbacks are that discharge times are short-lived and capacity is less. The most common are lead-acid, nickel-based, sodium-based, and lithium-ion. The last is one of the fastest-growing energy storage technologies due to lithium’s high energy density, high power, near 100% efficiency, and low self-discharge, according to a report out of the University of Michigan. There are a number of other energy storage system technologies in various stages of maturation:
There is certainly plenty of capacity for startups in the energy storage market. In 2020, the United States had just 23 GW of energy storage capacity compared to 1,100 GW of total installed generation capacity, according to the Department of Energy (DOE). In other words, only 2% of the energy produced in the United States is capable of being stored today. In California, which leads the nation in energy storage projects, the Golden State electrical grid is estimated to need 12 GW of energy storage for solar as it begins to replace 9 GW of natural gas generation over the next few years, the DOE reported.
Let’s take a look at five startups that could help generate additional energy storage system capacity in the future. The list is based on companies with grid-related technologies that took in funding this year, according to Crunchbase.
Leading with Lithium-ion
Way, way back in 2014, we covered 24M, a Boston area startup that was trying to commercialize black goo flow batteries. The 11-year-old company has now raised nearly $95 million in disclosed funding, including a $56.8 million Series E just a few days ago. The round was dominated by Japan-based companies and venture funds, such as Fujifilm (4901.T), Kyocera (6971.T), and Itochu Corporation (8001.T). Kyocera is a leading company in ceramics technology, and we’re not talking about the stuff at your local First Friday art walk. Itochu is a Fortune 100 company with annual revenues of $100 billion and a history that dates back to the 1850s.Read More
Source : nanalyze
