The Battery Decade - Renewable Energies need Stationary Storage
Dear Shareholders & Friends,
Energy storage systems (ESS) will be indispensable for electricity grids in the near future. Due to the intermittent nature of renewable energy sources, such as wind or solar, deploying ESS is the only way these renewable energy sources can be used efficiently.
Renewable energies are on the advance. In Germany, for example, the share of renewable energies is expected to have risen from 38% to 43% in 2019. With the growing importance of green electricity, frequency fluctuations in the power grid will continue to increase. This undesirable negative effect can only be solved by temporarily storing the energy.
Batteries hold the key to transitioning away from fossil fuel dependence - and are set to play a key role in the coming decade
The corresponding technology has been available for years and is constantly being improved. Laptops, smartphones, battery-powered vacuum cleaners and screwdrivers, to name just a few, have been using lithium-ion batteries for ages to operate without a power cable.
This can of course also be implemented on a larger scale. For example, Tesla's first electric car, the Roadster, bundled 6,831 cells of commercially available lithium-ion batteries, which were also used for laptops. After all, these gave it a performance that accelerated it from 0-100 kilometers per hour in 3.7 seconds. That was more than ten years ago.
In the meantime, ESS are also available for photovoltaic systems on the roofs of houses. Households can thus largely disconnect themselves from the power grids and use their private energy.
The principle also works on a very large scale and is increasingly being used in wind farms. The same storage media can be used here as in smartphones or cars, for example, i.e. above all lithium-ion batteries - you just need much more of them.
The analysts of UBS estimate that over the next ten years the energy storage market in the United States could grow to as much as $426 billion - and say there are many ways to buy into the surge.
First major projects successful
Vattenfall, one of Europe’s largest producers and retailers of electricity and heat, installed BMW batteries in wind farms in the Netherlands and Wales - the same type that is used in the i3 electric car. Gunnar Groebler, Vattenfall’s head of wind power, said, “Vattenfall is on the road to a smart, digitalised future, free from fossil fuels. I can think of few other energy installations that better demonstrate what that future looks like than this battery installation.”