REPORT SCOPE
INTRODUCTION
STUDY GOALS AND OBJECTIVES
BCC’s goal in conducting this study was to assess and describe the current status and assess the potential growth of the worldwide utility-scale electricity storage (UES) technology industry and the market for associated storage technologies. More specifically, the study included the following objectives: (1) summarize existing UES technologies and promising emerging technologies that are under development; (2) evaluate the existing UES technology industry, focusing on the manufacturers and providers of major components for viable storage technologies; and (3) assess market potential for UES technologies over a 5-year period from 2010 through 2015.
REASONS FOR COMPLETING THIS STUDY
With the exception of the recent period immediately following the global economic turndown, global demand for electricity is expected to continue to increase through at least the next two decades. However, much of the world’s electricity generation industry is in the midst of a turning point. In support of carbon dioxide (CO2) emissions reduction regulations and industry trends, the electricity generation sector is in the process of transitioning generally away from coal- and oil-fired electricity production, and toward the installation of increasing proportions of renewables. However, many renewable energy resources are intermittent in nature: Solar cells only generate electricity when the sun is shining, and wind turbines only generate power when sufficient wind is blowing. To meet consumer electricity demand, which is often not aligned with available renewable power production capacity, very large-scale energy storage technologies are needed.
The purpose of this report is to provide a regional assessment of the UES market potential, as well as existing and projected future market sizes. This is an important scope, because UES markets vary substantially based on regional characteristics and on the technology in question. Two UES technologies, compressed air energy storage (CAES) and pumped hydrologic storage (PHS) are considered in this report, because these two technologies are capable of storing sufficient energy to be relevant at the utility scale — hundreds to thousands of megawatts (MWs) generation capacity. Pumped hydrologic storage and compressed air energy storage require substantially different geologic and climatic conditions (sufficient topographic relief, land area, and water for PHS; and sufficient subsurface geology for CAES). Within this context, this report identifies the basis and installation/market potential for UES demand in each region, within the 2010–2015 timeframe.
INTENDED AUDIENCE
This study reviews UES technologies, along with relevant market and production information, technological descriptions and issues, applications, and market factors and potential, and gives an overview of supporting incentives and regulations in major worldwide markets. This study will be of interest to current and potential manufacturers and suppliers of UES technologies and components, as well as venture capitalists, entrepreneurs, and entrepreneurial companies interested in entering or expanding into the UES technology sector. It will also be of interest to corporate planners and strategists, companies involved in the production of combustion turbines, hydro turbines, compressors, pumps, and other infrastructure required for the implementation of UES technologies, as well as other energy efficiency advocacy groups, and other public- and private-sector interest groups and market analysts.
SCOPE OF REPORT AND METHODOLOGY
The scope of this investigation includes the major viable UES technologies that are currently being implemented in the power generation industry. These technologies are implemented to temporarily store electricity during periods of available generation capacity, for subsequent use during periods of increased demand, in support of load leveling and grid balancing. The energy storage technologies discussed in this report are increasingly deployed in support of intermittent renewable energy sources, such as solar and wind energy, which frequently generate power outside of peak demand periods. In these cases, UES technologies can facilitate delivery of renewable power to end users during periods of high and peak use, in support of utility level regulations and greenhouse gas (GHG) emissions reduction strategies, which are increasingly common in the global electricity market.
Installation and operation of UES technologies can include various products and components such as injection pumps, wellheads, compressors, expanders, gas turbines, hydro turbines, dams, centrifugal pumps, and a suite of other equipment and facilities. Other important requirements for installation of UES technologies may include, depending upon the specific technology employed, sufficient geological resources such as subterranean caves, aquifers, or abandoned/sealed mine shafts, or surface features such as an existing reservoir or reservoir site, typically located in areas of high topographical relief, and frequently including substantial biological and other natural resources. Although substantial amounts of water and air may be required for operation of UES technologies, these specific requirements are not considered UES products within this report, because they are supplied at relatively little to zero direct cost, unlike mechanical and other components, which must be purchased separately.
The market analysis provided in this report is based on a variety of data sources. These include the most recent government, industry, and academic data regarding the projected level of demand for utility-scale electricity storage technologies that could potentially translate into UES projects. These data were supplemented with an evaluation of major EOR projects that have been announced, or that are currently being proposed. Therefore, this report provides a comprehensive review of available data to provide a realistic, robust, and accurate assessment of this quickly changing market.
Emerging UES technologies anticipated to be commercially viable within the next 5 years are summarized, but are not included in the market assessment of this report. BCC analyzes each major viable utility-scale energy storage technology, determines its current market status, examines its impact on future markets, and presents forecasts of growth over the next 5 years. Technological issues, including the latest trends, are assessed and discussed, as are the current and likely regulatory environments in support of this industry.
BCC analyzes the industry on a worldwide basis in terms of its manufacturing and the deployment of its technologies or products. BCC examines government roles in support of EOR technologies worldwide, including regulatory support, government requirements, and promotional incentives for various UES technologies as relevant and available. BCC provides a review of the most relevant UES technologies, discusses recent trends in capacity installation and unit sales, and provides industry overviews and market assessments for each UES technology.
Worldwide Markets
The following table provides a review of the major worldwide markets that were assessed in support of this study.
TABLE A
LIST OF GLOBAL MARKETS CONSIDERED IN THIS STUDY
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Market
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Countries/Regions Included
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North America
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United States, Canada, Mexico
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Europe
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All European nations except Iceland, including the portion of Russia located west of the Ural Mountains.
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Asia/Australia
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All Asian countries (excluding the Middle East, Iran, Afghanistan, and Pakistan). The Philippines were considered, but other South Pacific islands are not included. However, many Asian countries do not have significant installed UES capacities.
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Source: BCC Research
METHODOLOGY
Both primary and secondary research methodologies were used in preparing this study. Background information, including reviews of each UES technology and its implementation status, were collected from government and industry sources. Specific citations and references are provided as needed to support this study, and website links to government and industry studies, white papers, and other relevant information are provided as relevant and available.
BCC’s research of present and historic market trends was conducted primarily via phone interviews and Internet research, relying on personal interviews and available governmental data. Provided internal company data and annual documentation of sales relevant to each UES technology were also reviewed in order to prepare market assessments. Based on the results of our surveys and research, BCC analyzed the potential applications for each technology, and forecast remaining 2010 sales and sales through 2015.
Market sizes and installed capacity figures were calculated based upon data obtained from surveyed parties, as well as published government and industry data sources. Additionally, when available, the data provided in this report were compared with other industry data to ensure relevance, applicability, and accuracy.
TABLE B
RESEARCH INFORMATION SOURCES
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Portion of BCC Report
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Information Source
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Primary or Secondary
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Review of UES technologies and products
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Scientific, government, and industry research
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Secondary
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Regulatory support for UES
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Government documents
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Primary and secondary
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Industry structure and market overview
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Industry interviews, industry and government data
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Primary
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Major companies and company profiles
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Industry interviews, published financial and trade information
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Primary
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Market assessment and projections
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Industry interviews, industry and government documents and data, BCC Research calculations
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Primary
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Source: BCC Research
INFORMATION SOURCES
Both primary and secondary research methods were used in preparing this report. BCC surveyed more than 60 companies and industry insiders to obtain the data for this study. Included were manufacturers of UES technologies, distributors of UES technologies, engineering firms involved in the UES industry, emerging technology developers, and current and former UES project developers, worldwide. Additionally, BCC compiled data from current financial and trade information, industry associations, and government sources.
ANALYST CREDENTIALS
Robert Eckard has more than a decade of experience working in the energy and environmental industries. Currently pursuing a PhD in water and energy resources at the University of California at Davis, Robert also runs a small industry research and technical consulting company, with an emphasis on energy/water/ environmental sectors. Robert has provided economic analysis market assessments, environmental analysis, and technical water and energy reports to state and local governments, other consultants, and private companies and individuals throughout the U.S., Australia, and Singapore. He also works as a subcontractor under the U.S. Department of Energy (DOE), providing analysis in support of electric power generation, including fossil and renewable energy technologies. Previously, he has produced reports for BCC Research on the global markets for residential and commercial solar thermal technologies, industrial- and utility-scale solar thermal technologies, distributed generation (DG) technologies, energy-efficiency technologies, and enhanced oil recovery. Robert takes great pride in providing high-quality, well-researched, and thorough analysis.
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DISCLAIMER
The information developed in this report is intended to be as reliable as possible at the time of publication and of a professional nature. This information does not constitute managerial, legal, or accounting advice; nor should it serve as a corporate policy guide, laboratory manual, or an endorsement of any product, as much of the information is speculative in nature. The authors assume no responsibility for any loss or damage that might result from reliance on the reported information or its use.
