- Government policies crucial for commercialization, BMI says
- Batteries may shift renewable energy use to peak demand period
Batteries that store electricity and offset power required from the grid during peak periods are key to unlocking lucrative power and transport markets, according to BMI Research.
Solar capacity has expanded globally due largely to premium subsidies and feed-in-tariffs, and these policies could play a similar role for battery storage, according to the Aug. 17 note. Regulators could provide incentives for self-consumption during peak generation and grid-feed-in when renewable generation is lower.
“Many power systems globally have registered robust wind and solar power growth over the last years, to the extent that sector power output surges beyond what can feasibly integrated into the grid through existing transmission networks and/or be met by power demand,” the BMI analysts wrote.
Batteries on the grid are poised to play a greater role in shifting renewable energy supply from periods of peak wind and solar generation to periods of peak demand. Countries facing bottlenecks due to enormous renewable power growth are seen offering incentives or funding for the battery storage market, according to BMI.