August 19, 2013
Traditional underground compressed air energy storage (CAES), which is one of only two proven long-duration bulk storage technologies, has been commercially available for more than 30 years. While no new CAES plants have been deployed since 1991, project activity and interest in the technology has grown in recent years, and higher-efficiency next-generation CAES technology is also nearing commercialization. According to a new report from Navigant Research, more than 11 gigawatts of CAES capacity will be installed worldwide from 2013 to 2023.
“Rapidly changing energy mixes and increasing renewable energy penetration will continue to introduce instability onto electricity grids worldwide in the coming years, while the volatility of load profiles will challenge grid operators to deliver reliable and secure electricity,” says Kerry-Ann Adamson, research director with Navigant Research. “These macro conditions will drive demand for CAES, helping to rejuvenate a sector that has been largely dormant for the last two decades.”
Growth in this sector will also be driven by advances in isothermal, or adiabatic, CAES, which can be sited anywhere and conveniently scaled using modular units. A handful of players are innovating in this space, and their technology will be commercially validated in the next 12 to 36 months, the study concludes.
The report, “Compressed Air Energy Storage”, analyzes the global market opportunity for both traditional underground CAES and next-generation CAES technologies across five key application segments: wind energy integration, solar energy integration, grid asset optimization, transmission and distribution deferral, and ancillary services. The report provides a comprehensive assessment of the demand drivers, policy factors, and technology issues associated with the market for CAES. Key industry players are profiled, and worldwide capacity and revenue forecasts, segmented by application, technology, and region, extend through 2023. An Executive Summary of the report is available for free download on the Navigant Research website.
Contact: Richard Martin
* The information contained in this press release concerning the report, “Compressed Air Energy Storage,” is a summary and reflects Navigant Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.