Electricity Utilities Overview

It may be surprising, but there is growing need to have electricity storage within the electricity distribution network.

The three key factors driving demand for storage in this market segment are:

1. Rising peak electricity demand overlaid on a generally aging electricity distribution network in most countries. Depending on local factors (such as the length of electricity line and number of customers), it can be more cost effective for electricity utilities to use energy storage to supply power at peak demand times rather than invest in a complete upgrade of the local network.


2. The falling cost of solar panels, coupled with growing concerns of greenhouse gas emissions. These megatrends are driving a steady increase in residential and medium scale renewable electricity generation. While this has environmental benefits, such large solar PV usage will be further assisted by coupling it with energy storage to:
   
   
   • Allow clean electricity to be used at night; and
   
   
   • Ease the pressure on local electricity networks which were (in most cases) not designed to handle two-way flows of electricity.


3. The advent of the ‘Smart Grid’, a term given to the modernisation of electricity networks to allow utilities better information and, in some cases, control of demand within their areas. Integration of energy storage with the Smart Grid is expected to allow utilities to manage peak demand across neighbourhoods and regions in a cost effective manner.

The world market for electrical energy storage for use within an electricity grid is far from mature and most analysts expect substantial growth within the next decade.