Energy Storage Types

Energy Storage Types

In the journey to achieve the goal of carbon peak and carbon neutrality, energy transformation has become the main battlefield, and electricity is the main force in this battle. New energy generation as a key link, energy storage technology plays a central role. I think we all know energy storage, then energy storage is also divided into several tracks you understand?

The energy storage market is divided into four main tracks based on application scenarios and needs: source-grid-side energy storage, industrial and commercial energy storage, household energy storage, and portable energy storage. Each track has its unique market characteristics and development potential. In realizing that energy storage not only balances supply and demand and improves grid stability, but also promotes the efficient use of renewable energy, it is an indispensable part of building a modern power system.

1. Source-network-side energy storage: the test of quality and quantity in the red sea competition

The concept of grid-side energy storage is actually to build a bridge between power generation and the grid, specifically designed to solve the problem of power generation fluctuations brought about by those high winds and high suns, so that the power system can better cope with emergencies and become more powerful and flexible. It is like an important cornerstone of the new power system, to help wind and solar energy, these clean energy more efficient access to the grid, while protecting the security and stability of the grid, its value can not be underestimated.

In recent years, the development speed of source-grid-side energy storage in the global market is simply fast, from 2020 to 2023, the annual growth rate is as high as 111%, which can be said to be the “dark horse” in the energy storage industry. Such growth not only shows its importance in the market, but also means that energy storage technology is ushering in its golden age.

At the technical level, source-grid-side energy storage relies on solutions that can store a lot of electricity for a long time, such as pumped storage, compressed air energy storage, and advanced battery systems, such as lithium-ion batteries and liquid-flow batteries. These technologies have superb energy storage capacity, regulation performance and fast response, which can effectively reduce the fluctuation of new energy generation, provide frequency regulation, peak shifting and other services for the grid, and make the grid more stable.

However, for large-scale development of source-grid-side energy storage, there are still some challenges to overcome, such as high initial investment costs, safety regulation of energy storage power plants, the economic benefits of the project, and the complexity of accessing the grid.

Those investing in grid-side energy storage are mainly those grid barons and traditional large power producers, such as State Grid Xinyuan and the Big Five and Four, which have strong backgrounds and dominate the market. This market is a bit like a buyer’s market, where a few investors have strong bargaining power in the face of a large number of suppliers, which may limit the seller’s profit margin.

Looking ahead, source grid-side energy storage will continue to play a key role in the global energy transition. Even in the face of competition from emerging energy storage technologies, its unique value in ensuring grid security and promoting green energy consumption is irreplaceable, and it will continue to drive the global energy mix toward cleaner, more efficient, and more flexible development.

2. Industrial and Commercial Energy Storage

Commercial and industrial energy storage is for places like factories and stores, and when you put in this kind of system, you can save money by being able to store electricity when the price is low and use it when the price is high. It also helps businesses generate their own electricity, relying less on the grid and making it easier to manage. This is a great trick for businesses to save electricity and money and improve efficiency.

The International Energy Agency has a report that says that in order to achieve carbon neutrality on the planet, you have to work in three areas at the same time: industry, housing and transportation. The industrial sector is particularly important, and commercial and industrial energy storage is the key to making industry greener.

In recent years, the commercial and industrial energy storage market has been growing particularly fast, with a global annual growth rate of 169% from 2021 to 2023. Because of the high and low electricity prices and the government’s push for energy saving and emission reduction policies, many companies are seeing the benefits of energy storage systems and are starting to invest in them. Commercial and industrial energy storage is especially popular in places where electricity prices vary greatly, helping companies save a lot of money and improve competitiveness.

The market for commercial and industrial energy storage is becoming more and more diversified, with all kinds of factories and stores using it, not only to store electricity and make money, but also to participate in virtual power plants and demand response programs, and to be active in the energy market together with grid companies.

However, because most of the industrial and commercial energy storage projects are below 10kV, they are more flexible in management and more actively traded in the market.

However, commercial and industrial energy storage has developed so fast that it has also encountered a lot of problems. Now that everyone is investing in this field, the output of energy storage companies is increasing too fast, faster than the market growth. Moreover, as electricity spot trading becomes more and more common, the difference between the high and low price of electricity is also shrinking, which makes the revenue of industrial and commercial energy storage projects decrease, and the enthusiasm of investors is also affected.

3. Household Energy Storage

Household energy storage, or energy storage equipment for home use, is a special part of the energy storage market that specializes in providing services to home users.

With the increasing popularity of solar energy for home use and the increasing demand for electricity, coupled with the growing awareness of energy saving, the home energy storage market is growing like a rocket, especially fast. Now, this market is mainly in countries with relatively high electricity prices, such as the United States, Germany, Australia and Japan. These places have high electricity prices and abundant solar energy resources, which provide great opportunities for the home energy storage market. Home energy storage products have to be of high quality to sell well, so the brand and sales channels become the key to competition.

I have heard a story that there is a place in the capital of South Africa, because of some special reasons, a bit like the Kowloon Walled City in Hong Kong, the power company can not enter, can not build a power grid to collect electricity, and as a result, there are often power outages. As a result, there were frequent power outages. Chinese home solar energy and energy storage products were a big hit there because of their cost-effectiveness,

helping the locals to solve the big problem of power outages. It’s hard to say if this story is true, but at least it shows that Chinese home energy storage products are quite successful in foreign markets.

However, compared with other markets, the household energy storage market is still relatively small and fragmented. Now the main markets are overseas, especially in Europe and the United States, which means that companies have to face the uncertainties of exchange rate changes, international trade policy changes, the risk naturally increases.

4. Portable Energy Storage: A New Companion for Outdoor Living

Portable energy storage, or what we often call mobile power, is a new market that has caught fire in the past few years. This kind of power because of its small size, easy to carry, easy to use, there are many other places can be used, such as going out exploring, camping, taking pictures, rescue or emergency situations, can come in handy.

This portable energy storage devices are generally used lithium batteries to store electricity, coupled with an inverter, you can turn the direct current in the battery into our usual alternating current, to charge a variety of portable devices. With the battery technology is more and more advanced, the cost is also more and more low, the performance of these portable energy storage equipment has become better, the price is also more affordable, which makes more and more people began to use them, the market is also more and more hot.

Each of the four major segments of the energy storage market has its own characteristics, has different market positioning and development prospects, and faces different challenges and opportunities. Enterprises need to choose the right track for deep plowing according to their own advantages and market demand, and continuously improve product performance and service quality to cope with the increasingly fierce market competition.

At the same time, the government and all walks of life should also strengthen the R&D support and market promotion of energy storage technology, and jointly promote the healthy and sustainable development of the energy storage industry. In this marathon of energy transformation, choose the right track to get far!