In the next three years, 98% of new power will be generated from renewable energy according to the ‘Electricity Market Report 2023’ published by the International Energy Agency (IEA). Renewable energy like wind and solar can be unpredictable, so we need megawatt-level battery energy storage systems (BESS) with fast responses. This article evaluates the readiness of the BESS market to meet increasing demands in terms of battery costs, policy incentives, and the concentration of market players.
Lower lithium battery costs: a gateway to BESS commercialisation
The energy storage market has grown because of the lower costs of lithium-ion batteries. Prices dropped by 90% from 2010 to 2020, making entry easier for BESS and growing the market.
Legislative measures spurring BESS expansion: a global endeavour
Major power-producing nations such as the US, UK, EU, Japan and China, have adopted legislation in recent years to promote energy storage systems. Policy encouragements and tax relief have bolstered this effort, aiming to further domestic application. For instance, in 2022, the US passed the Inflation Reduction Act (IRA), investing $370 billion in renewable energy and climate change initiatives. Energy storage equipment stands to gain an investment offset of over 30%, thanks to this act. In 2021, China set a goal of 30 GW storage scale by 2025, to expand its energy storage industry.
The BESS market: a melting pot of players
Although there is no hegemonic market leader in the BESS landscape, a few early entrants have gained some market hold. Yet the market continues to attract new players. Notably, the top seven battery storage suppliers have lost market share, from 61% to 33% this year, as indicated by a 2022 report, ‘Battery Energy Storage − Value Chain Integration is Key’. This shows that BESS is heading toward commercialisation with more market players.
Transition from early adopters to early majority: the role of IT/OT integration
The trend towards cleaner energy sources is irreversible, creating new and quick growth prospects for the BESS market. Observations show that both industry experts in battery cabinet manufacturing and startups investing in BESS are pushing beyond basic requirements. They are now focusing on providing faster construction, longer-term operations, and safer network system designs. Therefore AI, big data and network security must be more involved. To succeed in the BESS market will require strengthening IT and OT integration technology, and creating better energy storage solutions.
The choice of a thermal carrier is critical for optimal processing
Electrical Power & Protection
Historically steam, fuelled by coal, has been the most prevalent thermal carrier in South African industry. However, times are changing, with the manufacturing and processing sector needing to review the energy reticulation systems and thermal carriers currently in use.
Read more...ABB’s blueprint for a net zero future
Electrical Power & Protection
ABB’s Mission to Zero is a strategic initiative aimed at achieving a sustainable future characterised by zero emissions, zero accidents and zero waste.
Read more...General-purpose 350 W AC-DC power supply
Electrical Power & Protection
The TDK-Lambda GUS350 series of compact single-output general-purpose power supplies addresses the need for an economically priced product while maintaining reliability and quality.
Read more...Ground-breaking battery tester Comtest
Electrical Power & Protection
Midtronics offers the proven MVT handheld battery tester. This revolutionary tool, powered by MDX-AI, is set to redefine the standards of battery diagnostics and testing in the automotive industry.
Read more...Energy audits pave the pathway to sustainability and savings Schneider Electric South Africa
Electrical Power & Protection
Energy audits serve as essential tools for businesses looking to reduce costs and meet environmental targets. By analysing energy consumption across systems such as lighting, HVAC, ICT and water infrastructure, audits identify inefficiencies and quantify carbon footprints, enabling data-driven decisions for operational and financial optimisation.
Read more...Schneider Electric unveils new range of circuit breakers Schneider Electric South Africa
Electrical Power & Protection
Schneider Electric has launched its new MasterPacT MTZ Active range of circuit breakers in South Africa. This is a revolutionary new circuit breaker designed to set new benchmarks for safety, efficiency and sustainability while ensuring business continuity.
Read more...Time-sensitive networking RJ Connect
Editor's Choice Fieldbus & Industrial Networking
In this article, we will explore what is driving the rise of time-sensitive networking, how it is reshaping industrial efficiency, the challenges when deploying this technology, and ways to tackle these challenges.
While every effort has been made to ensure the accuracy of the information contained herein, the publisher and its agents cannot be held responsible for any errors contained, or any loss incurred as a result. Articles published do not necessarily reflect the views of the publishers. The editor reserves the right to alter or cut copy. Articles submitted are deemed to have been cleared for publication. Advertisements and company contact details are published as provided by the advertiser. Technews Publishing (Pty) Ltd cannot be held responsible for the accuracy or veracity of supplied material.
printer friendly version