There is an energy transition under way, one as radical as the adoption of coal, oil and gas at the beginning of the Industrial Revolution.
Renewable energy is playing an increasingly important role in the world’s energy mix and as this role expands, the development of energy storage plants will be central to the future success of the planet’s energy network.
What is energy storage?
Energy storage is the capture of energy produced at one time for use at a later time. A device that stores energy is sometimes called an accumulator. Energy comes in multiple forms including radiation, chemical, gravitational potential, electrical potential, electricity, elevated temperature, latent heat and kinetic.
Energy storage involves converting energy from forms that are difficult to store to more conveniently or economically storable forms. Bulk energy storage is dominated by pumped hydro, which accounts for 99% of global energy storage.
What are the barriers to greater adoption?
Despite the many benefits of energy storage, there are numerous barriers inhibiting greater technology adoption, including information gaps about technology options, costs, safety, potential benefits, and market barriers; an absence of coordinated government policies and program to achieve cost reductions and encourage market uptake; and a lack of constancy across available incentives, financing options, and business models. In fact, the state of the energy storage market and policy landscape is comparable to where the solar industry was about ten years ago, and, while solar and storage are different technologies, the policy trajectory that helped the solar industry could also inform how to scale-up energy storage markets.
What are the opportunities and potential benefits?
At current cost, a $500 billion investment in distributed energy systems would save U.S. businesses and households $4 trillion in peak-demand utility billing over the next 30 years. Battery cost could halve in the next four years, further amplifying those gains. If storage is used to enable more reliance on renewables there will be substantial climate benefits. If storage is just used to shift peak demand to nights in systems that rely heavily on coal, there will be little benefit.
Energy Storage and COP23
As the circular economy and climate finance will dominate the agenda at COP23, we hope to see energy storage take pride of place in this discussion. It presents an attractive, fixed and long-term return on investment for institutional investors all over the world, and will ultimately be the crucial catalyst in the shift to a smarter, more secure and carbon-free grid.
About the COP23 Edition
CCTNE is proud to foster meaningful engagement between key stakeholders for the forthcoming COP23 Edition, which will feature the G20 World Leaders, Heads of UN Agencies, Captains of Industry as well as Leading Scientists, Associations and NGOs.
To review the latest developments and action areas we will be covering, please visit our COP23 page.
To enquire about engagement opportunities, please contact:
James D. Butler
Business Development Director
+44 (0) 7432 740 836