What are the Necessities of Implementing Energy Storage System
energycioinsights

What are the Necessities of Implementing Energy Storage System

By Energy CIO Insights | Thursday, July 09, 2020

It is expected that in the next couple of years, the investment in energy storage infrastructure will increase rapidly.

FREMONT, CA: With the increase in industrial productivity, urbanization, and improving transportation networks, the demand for energy is high. An increase in demand has resulted in the power sector, boosting electricity production by installing new grids and increasing the capacity of the existing networks. Installation of renewable energy sources such as solar and hydropower plants is also on the rise as most countries are trying to reduce their dependencies on non-renewable energy sources. However, as energy production increases, a substantial amount of energy generated is lost in transit due to a lack of storage infrastructure. To counter this loss of power, investment in energy storage infrastructure is expected to gain momentum in the next couple of years.

Advantages of energy storage

Top 10 Energy Storage Solution Companies - 2020Energy storage infrastructure stores the additional energy produced by the power grids to reduce wastage of energy and minimize the loss in transit. This also helps in reducing the energy cost because of the economy of scale. Besides, storage units can supply energy in case of malfunctioning the power grid or case of emergencies such as a natural disaster. As storage units offer a back-up supply for the energy, it also increases the efficiency of the primary power grid, which can afford to have a production downtime or maintenance.

Investment opportunities in energy storage infrastructure

Energy storage infrastructure is a nascent sector with limited investments as of now. However, due to the growing demand for uninterrupted energy sources, the demand for energy infrastructure is expected to grow significantly in the years to come. Hence, companies cashing in the sector in advance will benefit in the long run.

Challenges associated to investment in energy storage infrastructure

As mentioned earlier, this is a nascent sector with a limited number of companies operational. This also suggests that there is limited know-how about the processes with limited research and development scope investigates. Moreover, the technological requirement for energy storage infrastructure will be diversified for different energy sources. For instance, infrastructure and technical requirements for setting up energy storage for a solar power grid will be drastically different to the ones required for hydropower.

See Also: Top Energy Tech Solution Companies

Weekly Brief

Read Also