Global energy storage system (ESS) battery market is forecast to diversify. While domestic lithium batteries are expected to keep the lead for the time being, next-generation batteries, such as fly wheel and flow, are in hot pursuit.
According to a latest report from a market surveyor Navigant Research on the 1st, ESS was established to a scale of 540MWh in the global market last year. This is equivalent to electric energy for consumption over one year by around 55,000 four-member households. Pumping-up power plants built for ESS last year represent approximately half the total storage volume (220MWh). It was followed by energy storage systems mounted with lithium ion batteries (117MWh), lead storage batteries (67MWh) and NAS (54MWh).
However, as the share of pumping-up power generation is expected to decrease gradually from 2017, lithium battery is forecast to lead the market. In addition, a rapid growth of air compression, flow and fly wheel batteries is predicted. On the other hand, the growth of lead storage batteries and NAS (sodium-sulfur) batteries led by Japan are forecast to slow down. This is because, while ESS utilization is expanding, such as for frequency regulation (FR), initial cost according to efficiency and product competitiveness are worsening.
Pumping-up generation is a method to store water at a hillside reservoir with a pump using surplus power and to generate power by using the stored water. Although it is similar to ESS in terms of electricity conversion to another energy form for storage and supply, this method needs a site of large area and requires a high level of initial construction cost. On the other hand, the price of lithium batteries is decreasing by around 5 – 10% a year per kW as the market expands according to technology advancement, such as energy density improvement.
However, some point out that domestic battery industry is in an urgent need for diversification in order to lead the market in the future. In addition, most lithium battery materials are being imported from foreign countries. Moreover, Korea is passive about next-generation battery development, such as fly wheel and flow batteries.
“As for ESS, construction sites require various battery technologies in terms of the necessary outputs and usages,” said Energy Program Manager Imre Gyuk from Department of Energy (DOE) of the U.S. “For Korea to lead ESS battery market, it must strive to secure various battery technologies rather than being confined to lithium ion battery.”
Korea’s ESS market is currently being led by Korea Electric Power Corporation and Korea Smart Grid Institute. It has been limited to lithium batteries by reason of technological verification.