Challenges remain in understanding energy storage as an investment - cleantech perspectives @ Clixoo
Discusses challenges in evaluating energy storage as an investment due to its nascency, and argues that energy storage should be considered an investment rather than an expense.
Moo: A 13-fold increase in 6 year, Xoo, that’s almost 60% CAGR, Wow!
Xoo: I see that age hasn’t dulled your math skills. Yet, these numbers are nothing.
Moo: Surely, Xoo, 60% CAGR is something.
Xoo: Not when you look at the overall numbers. Consider this: the world consumes about 25000 terawatt hours of electricity every year. And we are talking about 60 gigawatt hours by 2024, 1/150000 of the total electricity consumed. I’d not even bother to calculate the exact fraction - it’s pretty much zero.
Moo: It’s indeed minuscule the way you put it, but energy storage cannot be compared directly to energy consumption. Besides, energy storage is not needed for a very large portion of the demand
Xoo: Now, you have a point there. So let me only consider renewable electricity - mainly wind and solar power - where storage is more relevant.
Moo: That sounds more relevant, yes. I remember the number for solar and wind. With about 1.2 TW of solar & wind power installed capacity end of 2019, these two should be generating about 2000 TWh per year worldwide in 2020.
Xoo: We are finally getting somewhere in this, Moo. 2000 TWh in 2020 could mean at least 3000TWh by 2024, given the pace at which the solar & wind are growing. So, its 160 GWh against 3000 TWh which makes the tidal energy storage market at 1/20000th of the total electricity produced from solar and wind. Even agreeing that only a fraction (say 5%) of total solar & wind power need to be stored, just imagine the potential for storage.
Moo: Remarkable, Xoo, indeed.
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