Their endeavours to achieve permissible emission levels have created a need for better energy management that, in turn, has led to higher demand for batteries in utilities.
New analysis from Frost & Sullivan (powersupplies.frost.com), European Utility Battery Market, finds that the market earned revenues of $126.4 million in 2010 and expects this to increase to $564.9 million in 2015.
Although Europe generates sufficient energy, the quality of power leaves much to be desired. The frequent surges, dips and interruptions have made a strong case for utility batteries, particularly in back-up and grid stabilization applications in smart grids.
"The increasing importance as well as need to install and implement micro grids and smart grids stokes demand for utility batteries," says Frost & Sullivan Industry Manager Suba Arunkumar. "Utility batteries, uniquely, can make it viable to implement smart grids and develop infrastructure for charging electric vehicles."
Batteries could also help utilities save costs by lowering the need to construct a new generation plant. Additionally, batteries aid efficient handling of power, which reduces fuel consumption.
Currently, lead acid batteries are the only affordable chemistries; however, their energy density and performance come up short when compared to other chemistries.
On the other hand, the efficient chemistries are too expensive for widespread adoption. Scientists have not yet developed a chemistry that can be applied across all applications in utilities, and this translates to higher investments by end users.
Once they refine and expand the scope of their technologies, market participants can make the most of the demand from Western European countries that wish to increase power generation through environment-friendly renewable sources. Utilities will need batteries to store the generated energy and feed-in to the grid.
"Furthermore, the sophisticated electronic gadgets and technically advanced lifestyles in these countries hike the demand for electricity," notes Arunkumar. "Utility batteries cater to this demand by facilitating efficient energy management and enhanced generation."
If you are interested in more information about this study, please send an email with your contact details to Chiara Carella, Corporate Communications, at chiara.carella[.]frost.com.
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