According to a new technical market research report, Utility Power Storage Technologies (EGY056A) from BCC Research, the global market for electric energy storage (EES) is expected to be worth $2.6 billion in 2008. This is expected to increase to over $3.8 billion by 2013, a compound average annual growth rate (CAGR) of 8.0%.

The market is broken down into EES core applications and the power conversion systems that are needed to control and interface these technologies with the power grid. The EES core technologies segment is expected to be worth $1.9 billion in 2008 and reach $2.7 billion by 2013, a CAGR of 7.6%.

The EES core storage technologies of pumped hydro storage, compressed air energy storage, lead-acid batteries, sodium sulfur batteries, vanadium redox flow batteries, flywheels, superconducting magnetic energy storage and supercapacitors are positioned to make a significant impact over the next 5 years. These technologies can be deployed in various applications along the power chain including use in bulk generation, transmission and distribution, as well as providing enhanced services for the end user.

Total revenue for EES power conversion systems is expected to reach $711 million in 2008. This are expected to rise at CAGR of 8.9% and reach $1.1 billion by 2013.

Due to the convergence of higher fuel prices, increasing demand for power and escalating environmental concerns, there has been a surge in interest in grid-level energy storage. In addition to growth in renewable generation, which benefits greatly from storage, there have also been a number of legislative actions that will have a direct impact on this growing industry.