Energy storage system is a fundamental pillar for the advancement of new energy sources. Utilizing renewable resources such as wind and solar power showcases significant variability in generation, presenting challenges in maintaining the delicate balance between power supply and demand essential for grid security. Consequently, the integration of energy storage emerges as a pivotal solution to flexibly regulate the energy landscape.
Electricity, with its instantaneous consumption, necessitates precise matching between generation and consumption to uphold grid stability. Projections from the EIA indicate that by 2050, wind and solar power will constitute 72% of renewable energy generation, nearly doubling their share from 2020. Unlike traditional fossil fuel sources with robust adjustability, wind and solar power exhibit characteristics such as low inertia, low damping, and weak voltage support, leading to significant fluctuations that complicate the balancing act between generation and consumption. Consequently, surplus energy often goes to waste, resulting in phenomena like "curtailment." In 2023, China alone witnessed over 300 billion kilowatt-hours of wind and solar power curtailment, valued at over 100 billion yuan. Energy storage deployment offers a perfect remedy to this issue: excess power during peak generation periods can be stored, and stored energy can be released during peak consumption periods, ensuring real-time energy matching and grid stability.
Among various energy storage technologies, lithium-ion battery storage leads in commercialization. Representing the highest proportion of modern energy storage solutions, electrochemical storage systems based on lithium-ion batteries consist of battery packs, Battery Management Systems (BMS), Energy Management Systems (EMS), Energy Storage Converters (PCS), and other electrical components. Battery packs serve as the primary energy storage units, while BMS monitors, evaluates, protects, and balances batteries. EMS handles data collection, network monitoring, and energy scheduling, while PCS enables bidirectional conversion between AC and DC, controlling battery charging and discharging processes. With battery costs accounting for over 60% of the overall cost structure, and PCS costs around 10%, lithium-ion battery storage has established itself as the most mainstream and mature energy storage technology.
Lithium-ion battery storage can be categorized into lithium iron phosphate (LFP) and ternary lithium battery systems. LFP batteries, characterized by their safety, excellent low-temperature performance, good cycle life, and relatively lower cost, represent the primary technical route for lithium battery energy storage in China. Meanwhile, ternary lithium batteries, known for their high energy density, small footprint, and early development advantages, still maintain a significant market share in regions like Europe and the United States.
The global energy storage landscape is witnessing a surge in utility-scale deployments in China and the United States, alongside residential-scale installations in Europe. In 2022, the global energy storage market reached 50GWh, with the United States, Europe, the Middle East, and Africa (EMEA), and China accounting for significant shares. By 2026, these proportions are expected to shift, with the United States, China, and EMEA emerging as the leading contributors.
In conclusion, the energy storage industry is pivotal for addressing the intermittency of renewable energy sources and ensuring grid stability. As lithium-ion battery technology continues to evolve and costs decline, energy storage solutions are poised to play an increasingly significant role in shaping a sustainable and reliable energy future.