Insight: Energy storage - the missing link in the renewable energy system
Segment(s): Commercial, Industrial
The transition to a sustainable future has begun. Things that previously seemed out of reach – endless energy, achieving the goals of the Paris Agreement, and making energy greener and more cost-efficient – are now possible.
Climate change is one of the most pressing issues of our time. In order to accomplish the Paris Agreement’s goal of keeping the increase in global average temperature below two degrees Celsius, the world needs to transition from fossil fuels to renewable energy sources. Lithium batteries will empower this sustainable development.
In the past decade, we have seen a strong growth in the deployment of renewable energy technologies, with substantial cost reductions for solar and wind power as a driving force. Between 2019 and 2024, the capacity of renewable power is estimated to expand by 50 percent, where solar alone will account for 60 percent of this growth.
The challenge with renewable energy, however, is that it comes from intermittent sources. Solar power is harnessed when the sun is shining, and wind power when it is windy – not necessarily when there is a peak in energy demand.
“Energy storage is the missing link in the renewable energy system. By storing energy when it is abundant, inexpensive, and green, the world can take the necessary steps away from fossil fuel and save money at the same time,” says Stefan Jansson, founder and CEO of Polarium.
To overcome the challenges of energy from intermittent sources, global demand for energy storage based in lithium-ion batteries is projected to increase by a factor of 22 by 2030.
Who will benefit from energy storage?
Companies in a wide range of sectors can benefit from energy storage, from telecom towers and large industrial complexes to commercial office buildings and local supermarkets. By placing energy storage solutions in their power systems, companies can leverage peak shaving. Energy is harvested when it is in surplus and consumed during peaks in energy demand, resulting in both cheaper and more sustainable energy consumption.
By having energy storage solutions in the power system, it will enable renewables to be the primary source of future energy. And the transition to renewable energy is predicted to decrease carbon emissions substantially, a crucial reduction in order to reach the carbon targets in the Paris Agreement.
“A future is approaching where companies’ energy costs and environmental footprints are optimized in parallel. And the best thing is that it will never have to stop. Because the machinery of endless energy is driving the transition,” says Jansson.
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