Grid Storage – Islands of Opportunity in a Sea of Failure

March 14, 2011 | State of the Market Report

Every five minutes, electric utilities and transmission operators are challenged with the task of matching power supply with everchanging demand. To make matters worse, aging infrastructure, transmission and distribution congestion, and proliferating solar and wind generation are threatening to disturb this delicate balancing act and increase costs for utilities and electricity consumers. While storage units that provide megawatts of power and megawatt-hours of energy have the potential to cure many of the grid’s ailments, these technologies carry high capital costs and compete with traditional low-cost natural gas plants to support the grid. In this report, Lux analyzes the business case for 14 emerging storage technologies across 23 applications to determine the best investments for utilities, transmission operators, independent power producers and building operators in California, Germany, and China. Amongst the sea of possible scenarios, there are few combinations that offer an acceptable payback, while endless potential pitfalls exist.

Coverage Areas

  • Energy Storage
  • Owning the Energy Transition

Table of Contents

  • Executive Summary
  • Landscape
    Today’s grids are meeting the minimum requirements for reliability and power quality. However, grids are facing new challenges that traditional technologies aren’t able to manage.
  • Analysis
    Emerging technologies only make financial sense in a minority of scenarios, requiring customers to carefully evaluate their regional market before investing
  • Outlook
  • Endnotes

Lead Analyst

Steven Minnihan
Analyst
+1 (617) 502-5334

About Lux Research

Lux Research is a leading provider of tech-enabled research and advisory solutions, helping clients drive growth through technology innovation. A pioneer in the research industry, Lux uniquely combines technical expertise and business insights with a proprietary intelligence platform, using advanced analytics and data science to surface true leading indicators. With quality data derived from primary research, fact-based analysis, and opinions that challenge traditional thinking, Lux clients are empowered to make more informed decisions today to ensure future success.

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