U.S. Innovation: New Study Predicts Healthy Growth for Energy Storage Industry
WASHINGTON, Feb. 8, 2012 /PRNewswire-USNewswire/ — The Electricity Storage Association (ESA), the preeminent trade association dedicated to fostering the development and commercialization of energy storage technologies, commended the findings of a report released by the Copper Development Association (CDA) that forecasts robust growth and lower cost throughout the energy storage market.
CDA is the information, education, market and technical development arm of the copper, brass and bronze industries in the USA. The CDA paper – “U.S. Grid Storage Market Study” – which was conducted by KEMA, evaluates the near-term, five year market for grid energy storage technologies in the United States.
The findings indicate that the market for energy storage is robust with a great deal of potential; the study estimates between two and four gigawatts of energy storage could be developed depending on financial incentives. Over the next five years, it is expected that the cost of energy storage will decrease, strong investment will continue, and demonstrations will move into full commercialization.
Brad Roberts, Executive Director of the ESA, said, “We are thrilled that an outside analysis affirms what the energy storage industry has already been seeing. The next five years will be critical and provide enormous opportunity to move storage technologies to full commercialization.”
Katherine Hamilton, Policy Director for ESA’s Advocacy Council, said, “As a nation, we need to support the market for energy storage through smart and effective regulatory and legislative policies that reduce risk, value the benefits, and encourage investment in these technologies.”
Specific findings include:
- Many energy storage technologies are under development and some are ready for commercialization;
- Mature technologies (thermal energy storage, pumped hydropower, for example) currently make up the vast majority of the energy storage market today;
- In the near term, advanced batteries and thermal storage technologies will see the largest growth opportunities;
- Research and development will continue to have a positive impact on energy storage technology innovation;
- Venture capital investment continues to be robust in the US but financial incentives will have an enormous impact on the market over the next five years;
- The ability to scale and drive down cost of energy storage is seen as a challenge;
- Policy, both legislative and regulatory, continues to shape the market for energy storage;
- Demonstration projects have continued success and serve to enhance the business case for energy storage.
The ESA sees energy storage as the resource-neutral, emission-free set of solutions for a more reliable, robust electric grid that enables all energy sources to operate more efficiently and effectively.
Headquartered in Washington, D.C., the ESA is a 501(c)(6) trade association, formed in 1996. ESA’s membership is comprised of a diverse group of electric utilities; energy service companies (ESCOs); independent power producers (IPPs); energy storage technology developers and suppliers; and those in the energy storage research community. The ESA Advocacy Council currently has twelve members, including: A123 Systems, Inc., AES Energy Storage, Altairnano, Aquion Energy, Beacon Power, FIAMM, NextEra Energy, Prudent Energy Corporation, S&C Electric Company, Saft America, Inc., SustainX Energy Storage Solutions, and Xtreme Power.
SOURCE Electricity Storage Association (ESA)