According to the survey of the Clean Technical Advisory Agency Apricum, the number of battery energy storage systems (BESS) for fixed applications has begun, including public utility scale and distributed applications. According to recent estimates, it is expected to increase from $ 1 billion in 2018 to 2024 to $ 25 billion in 2024.
Apricum determines three main drive factors for fixed battery energy storage systems (BESS) growth: First, the active progress of battery costs. The second is an improved regulatory framework, both of which increase the battery competitiveness. The third is that the fixed battery energy storage system is a growing addressable service market.
Key prerequisites for fixed battery energy storage systems (BESS) are the decline in cost during battery life. This is mainly achieved by cutting capital expenditures, improving performance or improving financing conditions.
The fixed battery energy storage system (BESS) technique in recent years, is a lithium-ion battery, from about 500-600 US dollars / kWh in 2012 to $ 300-500 / kWh. This is mainly due to this technology.“3C”The dominant position in mobile applications such as industry (computer, communication, consumer electronics) and electric vehicles, and the resulting scale economy. In this context, Tesla plans to pass its 35 GW in Neva / kW“Giga-Factory”The production of the factory further reduces the cost of the lithium ion battery. American energy storage battery manufacturer Alevo also announced a similar plan, which plans to transform a waste cigarette factory into a 16 GW battalry plant.
Today, most energy storage technology entrepreneurs are committed to using low-capital expenditures. They realize that it will be difficult to meet the production of lithium-ion batteries, such as companies such as EOS, Aquion or Ambri are designing their batteries in order to meet certain cost requirements from the beginning. This can be achieved by using a large amount of inexpensive raw materials and high automation techniques for electrodes, proton exchange membranes, and electrolytes, and producing their production and manufacturing contractors (such as Foxconn). Therefore, EOS said that its MW-level system is only $ 160 / kWh.
In addition, innovative procurement can help reduce the investment cost of the fixed battery energy storage system (BESS). For example, Bosch, BMW, and Swedish Utilities, Vattenfall, is installing a 2MW / 2MWH fixed energy storage system based on the lithium ion battery used in BMW I3 and Activee cars.
The performance parameters of the battery can be improved through the efforts of manufacturers and operators to reduce the cost of the battery energy storage system (BESS). The life of the battery (life cycle and cycle life) obviously has a big impact on the economics of the battery. At the manufacturing level, the work life can be extended by adding a proprietary additive to the active chemical and improving the production process to achieve a more uniform battery quality.
Obviously, the battery should always operate within the operating range of its design, for example, when it is involved in the discharge depth (DOD). The cycle life can be significantly extended by limiting the possible discharge depth (DOD) in the application. The detailed knowledge of the best operating limit obtained by strict laboratory testing, as well as a major advantage of the appropriate battery management system (BMS). The round trip efficiency loss is mainly due to the inherent lag phenomenon in the cell monomeric chemistry. The appropriate charging or discharge rate, and maintaining good discharge depth (DOD) helps maintain high efficiency.
In addition, the components of the battery system (cooling, heating or battery management system are consumed efficient) efficiency and should be kept at minimum. For example, by adding mechanical components to the lead-acid battery to prevent dendrites from being formed, the degradation of the battery capacity over time can be alleviated.
The banking business of the fixed battery energy storage system (BESS) project is often influenced by limited performance records and the performance of financing institutions in performance, maintenance, and business models in battery storage.
Suppliers and developers of the Battery Energy (BESS) project should try to improve investment conditions, for example, by standardization warranty, or through the implementation of the battery’s comprehensive testing process.
In general, as the above capital expenditure decreases and the number of batteries continue to increase, investors’ confidence will increase, and their financing cost will decline.
2. Regulatory framework
Battery energy storage system deployed by WEMAG / YOUNICOS
Like all relative new technologies entering the mature market, the battery energy storage system (BESS) depends to a favorable regulatory framework. At least this means that the battery energy storage system (BESS) has no market participation. Ideally, the government departments will see the value of the fixed storage system and incentive it accordingly.
An example of eliminating its application barrier is the No. 755 issued by the US Federal Energy Management Committee (FERC), requiring ISOS3 and RTOS4 to provide faster, more accurate and higher MW-MilieE55 resources performance payment. Since the independent operator PJM has been modified accordingly in October 2012, the storage scale has been increased, and the result is the 62 MW storage equipment deployed in the US 2014, three points Two is the energy storage products of PJM.
Residential users in Germany, buying solar and energy storage systems can obtain low-interest loans from the development bank KFW owned by the German government and get up to 30% rebate up to 30%. So far, this has prompted approximately 12,000 energy-saving systems, but it should be noted that another 13,000 energy storage systems are built outside of the program.
In 2013, California’s regulatory authorities (CPUC) requested that in 2020, the utility department must purchase 1.325GW of energy storage capacity. The procurement plan is designed to demonstrate how battery is modernized and helped solar and wind integration.
The above examples are major events that have attracted significant attention in the field of energy storage. However, smaller rules, often undetected changes may have a powerful impact on the area applicability of the battery energy storage system (BESS). Its potential examples include:
By simply reducing the minimum capacity requirements of Germany’s main energy storage markets, residential energy storage systems will be allowed as virtual power plants to further strengthen commercial cases of distributed battery energy storage systems (BESS).
The core elements of the EU Third Energy Reform Plan in 2009 were the separation of power companies and sales services and their transmission networks. In this case, due to some legal uncertainties, the transmission system operator (TSO) will be allowed to operate the storage system is not fully clear. The improvement of legislation will lay the foundation for the broader application of the battery energy storage system (BESS) on grid support.
3. Markets that are addressable
AEG power solution
The specific trend of the global power market is being triggered, in principle, in principle, fixed battery energy storage systems (BESS) services can be used. The relevant trend is:
Due to renewable energy volatility and reasons for increasing power supply elasticity during natural disasters, the demand for flexibility is increasing. Here, the energy storage project can provide auxiliary services such as frequency and voltage control, grid bust, renewable energy, and black start.
Due to the expansion and implementation of power generation and transmission and power distribution infrastructure due to lack of aging or capacity, and increased electrification in rural areas. In this case, the battery energy storage system (BESS) can be used as an alternative to delay or avoiding infrastructure investment, and is used to stabilize the island grid or improve the efficiency of diesel generator sets from the network system.
Industrial, commercial and residential end users are working hard to deal with higher electricity bills, especially due to price changes and costs. For (potential) residential solar power owners, the declined Internet price will affect economic feasibility. In addition, power supply is often unreliable, and the power supply is poor. Fixed batteries can help increase self-consumption, execution“Peak peak”and“Peak transfer”Also provide an uninterruptible power supply (UPS).
Obviously, in order to meet this need, there are various traditional non-energy selection. Whether the battery constitutes a better choice must be evaluated depending on the specific situation and there may be great differences between different geographies. For example, although there are some active business cases in Australia and Texas, Texas, but these cases need to overcome long-distance transmission, the typical cable length of Germany is less than 10 kilometers, which makes traditional grids Extensions In most cases a lower cost alternative.
Typically, it is not enough to serve only the battery energy storage system (BESS). Therefore, the service should be combined“Benefits”In order to reduce costs through a variety of mechanisms. Starting from an application with the maximum source of income, you should first use the spare capacity to grasp the on-site opportunity and avoid regulatory obstacles like the UPS power supply. For any remaining capacity, delivery to the grid (such as frequency adjustment) can also be considered. Undoubtedly, additional services cannot hinder the development of major services.
Influence of participants in the energy storage market
The improvement in the above-mentioned promotion will bring new business opportunities and increased market growth. However, negative developments will have caused business models that fail to reach even lose economic feasibility. For example, since some raw materials have an unexpected shortage, the expected cost decline may not be achieved, or commercialization of new technologies is not performed as expected. The changes in regulations may form a framework that the fixed battery energy storage system (BESS) cannot participate. In addition, the development of the neighboring industry may produce additional competition on fixed battery energy storage systems, such as frequency control using renewable energy: in some markets (eg, Ireland), the grid standard has requested wind farm as the main Electric power reserves.
As a result, companies must pay close attention, predict and actively affect battery costs, regulatory frameworks, and successful participation in fixed batteries.
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