Low-cost energy storage could transform the power arena
A new post up at McKinsey states:
Storage prices are falling much faster than anyone expected, due to the growing market for consumer electronics and demand for electric vehicles (EVs). Major players in Europe, Asia, as well as the United States are all scaling up lithium-ion production to serve EV and other power applications.
McKinsey research has found that storage is economical for a lot of commercial customers to reduce their peak consumption levels. At todayâs lower prices, storage is starting to play a broader role in energy markets, moving from niche uses including grid balancing to broader ones such as supplanting conventional power generators for reliability, providing power-quality assistance, and supporting renewables integration.
We believe these markets will continue to expand, creating a significant challenge for utilities or declining customer demand. Eventually, joining solar with storage and a small electrical generator (known as full grid defection) will make economic senseâin a matter of many years, not decades, for some consumers in high-cost markets.
In this article, we examine, as these trends play out, how storage could transform the operations of power markets and grids, the roles of third parties and utilities, and the ways that customers consume and produce power. Our analysis is directed at developments in Europe as well as the United States; the progression of storage could and probably will take a different course in other markets.
This is just a summary, but you can read the rest at the link provided above. This market is ripe for disruption.