Lithium-Ion Batteries Find Niche in Backup Storage, UPS
Led by lithium-ion (Li-ion), emerging battery technologies used in the backup and uninterruptible power supply (UPS) markets will grow six-fold from $143 million this year to $896 million in 2020, according to Lux Research. Li-ion batteries will account for a bulk of this market, reaching $553 million in 2020, and additionally restoring demand-supply balance in the Li-ion market, according to Lux Research’s report Backup and UPS: Stable Growth in the Unstable Stationary Storage Markets.
Medical, commercial and data center operators are the major users of the conventional backup and UPS markets, which have a global installation base of 800 GW, or 15 percent of global peak consumption. The Li-ion chemistry offers enhanced life and power density over incumbent lead acid systems, according to LUX.
Other conclusions from the report include:
- As lithium-ion developers struggle to find large-volume customers, the UPS and backup markets offer a chance for steady growth. The sector will add 12.5 percent to global demand for stationary lithium-ion systems. The Li-ion developers, in return, offer a 4 percent to 11 percent reduction in total cost of ownership over competing lead acid.
- The sodium nickel chloride battery, which offers significant cost benefits for high-use applications on account of its low capital cost and significant energy capacity, will grow to $116 million in the backup market in 2020. On the other hand, power-dense technologies including flywheels and ultracapacitors will not find a home in UPS because of their low energy density and prohibitive cost.
- Of the 14 GWh of forecasted Li-ion production in 2017, only 5 GWh will target stationary applications, thanks to demand from the consumer and mobile sectors. This will help strike a delicate balance between global supply and demand, ending years of oversupply and eroding margins.
Recently, power management products firm Xtreme Power unveiled its new 1 MW lithium ion-based battery energy storage system for Texas’ Center for the Commercialization of Electric Technologies.
- Practical Guide to Transforming Energy Data into Better Buildings
- Planning for a Sustainable Future
- Choosing the Correct Emission Control Technology
- Advanced Rooftop-Unit Control (ARC) Retrofits: Field Demonstrations Validate Energy Savings
- Operationalizing EHS Management: Bridge the Gap from Strategy to Execution
- 2016 Environmental Leader Product & Project Awards
- There’s Money in the Trash
- 10 Tactics of Successful Energy Managers
- Top 10 Steps for a Successful EMIS Project
- eBook: Five Key Considerations for Integrating Renewables into Your Procurement Strategy