What are energy storage facilities?

The energy sector is facing more and more challenges, and the response to some of them is the effective management of the generated energy and its effective storage. That is why more and more electricity storage technologies are being developed every year. What exactly are they and can they meet current market demands?

What is energy storage?

Electricity storage is currently a top priority for the global energy sector as it undergoes a transformation aimed at achieving complete decarbonization. These storage facilities enable the capture of surplus electricity produced when generation exceeds current consumption. They accumulate this energy for future use, often with the assistance of information and communication technologies.

The primary motivation behind developing the electricity storage market is the imperative to enhance grid stability. The challenge lies in incorporating a larger proportion of renewable energy sources into the energy mix. Consequently, the objective of energy storage is to optimize grid operations, ensure self-reliance in off-grid prosumer setups utilizing renewables, and maintain equilibrium between energy supply and demand on the grid.

Benefits of energy storage

Source: Clean Energy Group

Cooperation between warehouses and power plants

Electricity storage facilities play a crucial role in the shift from centralized energy generation to a distributed system, making them highly relevant for collaboration with decentralized power plants. Furthermore, various methods of energy storage are now integrated into most energy generation systems, enhancing their efficiency and adaptability.

Beyond their traditional roles in managing production, demand, supply, and network flexibility, electricity storage facilities are increasingly expected to handle substantial long-term energy storage. This compensates for the inherent fluctuations in power generation associated with renewable energy sources.

The global energy storage industry’s development is influenced by several factors. For instance, the growth of energy storage often goes hand in hand with the expansion of renewable energy sources like wind and solar. This synergy means that companies producing energy storage devices also contribute to the advancement of renewables. Consequently, both energy storage and its manufacturers play pivotal roles in the widespread adoption of renewable energy sources. Simultaneously, these developments are shaping an entirely new system of electricity generation and distribution.

Types of energy storage

Basic classification of energy storage

Energy storage systems can be divided into several types. One of the most commonly used classifications distinguishes systems:

• mechanical,
• electric,
• electrochemical,
• chemical,
• thermal/thermochemical.

There are various types of energy storage systems, each falling into distinct categories based on their mechanisms and functions. Here’s an overview:

1. Mechanical Electricity Storage Units: This category includes devices such as pumped-storage power plants, flywheels, diabatic compressed air tanks, and adiabatic compressed air tanks. These systems store energy through mechanical means.
2. Electrical Storage: Electrical storage encompasses devices like capacitors and superconducting magnetic energy storage. They store energy in an electrical form, often providing quick discharge and recharge capabilities.
3. Electrochemical/Chemical Energy Storage: This category consists of batteries, redox-flow systems, hydrogen storage, and natural gas synthesis. These systems store energy through chemical reactions, making them suitable for various applications, including electric vehicles and grid storage.
4. Thermal/Thermochemical Storages: Thermal energy storage systems include hot water storage, steam storage, latent heat storage, and sorption/reversible binding. They store energy by heating or cooling materials, allowing for later use in heating, cooling, or power generation.

These energy storage systems are at various stages of development and testing. While some are already commercially available and widely used, others are in early development stages, and demonstration projects are underway to showcase their potential and effectiveness.

Classification of energy storage facilities according to the design purpose

In addition to their physical classification, electricity storage facilities can also be categorized based on their intended design purpose, which typically falls into two main goals: large capacity or high power. Here’s how they are classified:

Large Capacity Design Goal:

• Hot water storage
• Latent heat storage
• Sorption/reversible bonds
• Pumped storage power plant
• Adiabatic compressed air tank
• Battery
• Redox-flow system
• Hydrogen storage
• Natural gas synthesis

High Power Design Goal:

• Water vapor storage
• Flywheel
• Battery
• Capacitor
• Superconducting magnetic energy storage

It’s important to note that while supercapacitors and batteries both store energy, they are utilized in slightly different situations and have varying charging and discharging processes, as well as other distinct characteristics.

Furthermore, the diverse electricity storage systems differ significantly in their structure, operational modes, and energy storage methods. The type of energy storage employed also determines its ability to regulate grid frequency and match energy generation with demand. Additionally, the operational methods of these electricity storage facilities may vary in some aspects. It’s essential to acknowledge that some of these differences arise from the complexity of each storage type and its unique characteristics.

Classification taking into account storage time

Electricity storage facilities come in different types, and they’re used for storing energy over different time frames. Some are designed for short to medium-term storage, which means they can store electricity for a few hours to a few days. Examples include battery systems, heat accumulators, and certain types of compressed air and pumped storage power plants. On the other hand, there are long-term storage systems that can store energy for several days to weeks. These typically involve chemical storage methods, like hydrogen-based systems. Long-term energy storage is gaining importance as we seek more ways to manage energy supply and demand over extended periods.

Advantages and disadvantages of energy storage

Energy storage offers significant advantages, primarily in balancing voltage and frequency, which are crucial for a stable electrical supply. Storage allows energy to be saved for extended periods and used only when there is a demand for it. This efficient utilization ensures that generated energy is not wasted but remains readily available and can be transferred as needed.

Nevertheless, it’s essential to acknowledge the drawbacks of electricity storage, even though they are often overshadowed by the benefits. One prominent disadvantage is the high associated costs. Energy storage systems can incur expenses both in terms of their initial setup and ongoing maintenance. Additionally, some energy loss occurs during the storage and retrieval process, and the efficiency of this process may vary.

Overall, while energy storage has its downsides, the advantages typically outweigh these drawbacks. However, it’s essential to be aware of these limitations and continue refining energy storage technologies to mitigate their impact.

Prospects for energy storage

Our article titled “Global Energy Perspective” offers valuable insights into the future of the energy system. A report by McKinsey & Company, also titled “Global Energy Perspective,” confirms the increasing demand for efficient energy storage as various energy subsectors develop rapidly. This growth is leading to the emergence of new battery and electricity storage unit manufacturers, while existing producers are adapting to current market trends. Devices created in alignment with the latest technological advancements can meet even the most demanding requirements. The rising number of successful energy storage production plant implementations further attests to this.

Many traditional manufacturers are responding to market demands by shifting their production focus toward lithium-ion batteries. However, with the surging popularity of these devices, questions arise about their safety. The energy storage industry cannot overlook safety concerns, so improvements take time. Rigorous testing of new solutions is conducted, with continuous monitoring both before and after their introduction to the market.

Energy storage has also become a crucial component in power plants utilizing renewable energy sources. An increasing number of major companies are integrating storage systems into their projects. Bloomberg New Energy Finance predicts that by 2040, around 1,095 gigawatts of energy storage will be deployed globally, covering a wide range of sectors, from residential and commercial to industrial and public utilities. Wood Mackenzie forecasts similar robust growth, estimating that the market will reach 158 gigawatt-hours by 2024. This substantial investment is supporting energy storage initiatives worldwide.