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Five reasons

Why energy storage is the next big thing

Linda Pålsson

Energy storage enables renewable energy production

          As the world shifts towards renewable energy sources like wind and solar, the intermittent nature of these sources poses a significant challenge. Energy storage provides a solution by capturing excess energy when production is high and releasing it when demand peaks, ensuring a stable and reliable energy supply. This capability is crucial for achieving deep decarbonisation and maintaining grid stability.

1

Able to meet different storage needs

          Energy storage needs vary based on the duration and purpose of storage. Short-term storage, lasting from a few minutes to a few hours, is essential for balancing supply and demand fluctuations and maintaining grid frequency. Medium-term storage, spanning several hours to a day, helps manage daily peaks in energy demand. Seasonal storage, which can last for months, is vital for storing energy produced during high-generation periods (like summer) for use during low generation periods (like winter).

2

Mature technologies

          Energy storage solutions are already existing technologies that now need to be implemented as part of the global

energy systems:

Pumped hydro storage – the gravitational potential energy of water: : Pumped hydro storage (PHS) is a well-established technology that accounts for around 95% of existing global energy storage that involves two water reservoirs at different elevations.

 

During periods of low electricity demand, excess energy is used to pump water from the lower to the upper reservoir, allowing medium to long-term storage. When demand is high, the stored water is released back to the lower reservoir, passing through turbines generating electricity. PHS provides large-scale energy storage capacity, supports grid stability, and allows for a better integration of renewable energy sources.

 

New solutions for seasonal thermal energy storage: Thermal energy storage (TES) is crucial in district heating systems. It stores excess heat generated from various sources, such as combined heat and power (CHP) plants, solar collectors, and industrial processes for later use. TES systems can store heat provides, making it possible to use heat generated in summer during winter. This capability enhances the efficiency and sustainability of district heating networks.

 

Scaling thermal heat storage: Scale matters for thermal heat storage. The scale of thermal heat storage impacts its efficiency, cost, capacity and integration potential. New large-scale solutions, like Vantaa Energy’s thermal heat cavern in Finland with a capacity of 90 gigawatt hours – enough to heat a medium sized Finnish city for an entire year – enables energy companies to achieve higher efficiency and lower costs per unit of energy stored.

These systems can be integrated more effectively into district heating and industrial processes, allowing for better and sustainable utilisation of excess heat.

 

Batteries as part of integrated renewable systems: Integrated renewable systems, combining solar, wind, and battery storage, are revolutionising the energy landscape.

 

Due to their ability to mitigate intermittency, Battery Energy Storage Systems (BESS), have become the norm for renewable energy production. They store surplus energy generated during sunny or windy periods and release it when production is low, ensuring a continuous power supply. Releasing energy during peak demand times allows energy producers to maximise revenue by selling electricity at higher prices. BESS play a vital role also in grid stabilisation by providing a reliable power supply, which helps maintain grid frequency and prevent blackouts. By storing excess energy, BESS reduce waste and increase the overall efficiency of renewable systems.

 

Furthermore, located near demand centres, batteries also help ensure that required capaci-ty is always available, such as for large-scale electric-vehicle (EV) charging.

 

Mechanical storage: Mechanical energy storage includes solutions such as flywheels and compressed air energy storage (CAES). These systems store energy in mechanical forms and are useful for balancing short-term fluctuations in energy supply and demand.

 

Hydrogen storage: Hydrogen storage converts electricity into hydrogen, providing a long-term energy storage option. This technology is well suited for storing renewable energy over long periods and can be used in sectors where decarbonisation is more difficult, such as heavy industry and transport.

3

Different solutions for different markets

          AFRY provides extensive expertise in various energy storage technologies, making it possible to have a genuine conversation with our clients on what their needs are and the type of solution that works for them best.

With our experience of all the different factors at play around the world along with a thorough understanding of both the projects and technologies involved, we offer a holistic perspective. By integrating various storage solutions, we are able to create a balanced and resilient energy system.

4

More affordable solutions, greater global adoption

          The cost of energy storage solutions has seen a significant decline over the past decade, driven by technological advancements, economies of scale, and increased market competition. The cost of BESS has decreased, while the cost of large-scale solutions like pumped storage remains competitive due to their long lifespan and large-scale storage capacity. The future of our energy systems requires energy storage, and it is now financially viable for all types of industries. Overall, the cost of energy storage solutions has decreased significantly and is expected to continue falling. This trend will facilitate the broader adoption of renewable energy, enhance grid stability, and support global decarbonisation efforts.

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