A report by Arthur D. Little
Renewable energy deployment over the last decades has posed unprecedented challenges for the planning and operation of power systems. In the context of increasingly decentralized and intermittent generation, power utilities1 and system operators need to rethink their portfolios, business models and positions in the market in order to be resilient to these changes and benefit from them.
Battery storage has gained strong interest as an option to respond to these new challenges and provide flexibility to the system to cope with high levels of renewables. Driven by increased usage in the automotive industry, costs of batteries have significantly dropped since 2010 (65% decrease for lithium-ion batteries2), although further cost reductions are necessary for widespread use in the power sector.
Actors all along the energy value chain find themselves facing a number of key questions when considering how energy storage may affect their businesses:
- In what applications will battery storage play a key role in managing the future grid?
- What will be the most attractive business models?
- For which (combination of) actor(s) along the value chain?
- What factors influence the choice of battery technologies?
- Which battery technologies will likely be the most important in each application?
- What are the drivers, enablers and alternatives to battery storage deployment?
In this report we respond to the above questions and describe the results of a study in which we have reviewed battery applications, battery types, drivers & barriers to battery storage and trends in key markets, based on interviews with major market players in the energy sector. We have explicitly addressed what’s in it for the different types of stakeholders along the value chain.
Released: January 2017
Download File ADL_Battery_Storage.pdf (.PDF, 1.1 MB)
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