A commentary at Apricum looks at what is necessary to increase the size of the battery energy storage system (BESS) market. The writer – Apricum principal Florian Mayr – says that among the main drivers will be the decrease of costs over the life of the battery. This decreased includes the reduction in capex – the initial cost of the battery – the emergence of a regulatory framework that increases the sector’s competitiveness and a growing market.
Mayr describes the status and possibility of achieving each of these conditions in detail. For instance, the market can increase due to demands for flexibility in elecrtrical systems, the need to replace or expand the grid and customer desire for high quality and low cost power. It also is possible, he notes, that conditions deteriorate. For instance, expected cost declines may not occur due to shortages of raw materials or breakthroughs in competitive technologies.
The Rocky Mountain Institute this week released its own study of the future of batteries. The study notes the increase in installed battery capacity and poses four key questions for the future: What services can batteries provide to the grid? Where on the grid should batteries be deployed? How much benefit can the batteries provide? What challenges exist?