Energy storage costs to halve, market set to boom: study by Giles Parkinson

A new study released by the Clean Energy Council points to the huge role that energy storage can play in the evolving power markets, but points to the huge barriers – mostly the interests of incumbent utilities – that stand in its way.

The report prepared by consulting group MarchMent Hill, entitled Energy Storage in Australia - Commercial Opportunities, Barriers and Policy Options, predicts the market for energy storage technologies could grow to more than 3,300MW by 2030. (See graph at bottom of article).

It suggests that the use of storage is inevitable, and that it will have a fundamental impact on the electricity industry – which has been designed on the principal that energy cannot be stored. All that now changes.

The report canvasses a range of technologies – from lithium-ion and other types of batteries, to pumped hydro systems, “smart hot water” devices and technologies such as compressed-air and flywheels – that could be used by utilities to balance the grid as the penetration of renewables grows, better meet peak demand, strengthen regional and off-grid areas, and facilitate the growing use of electric vehicles; and used by commercial and residential customers to optimise the output and the economics of their own renewable generation, such as rooftop solar.