By Jennifer G. Gallegos, director of applications and communications, Yotta Energy
All through the previous couple of months, we have now seen a radical shift in renewable energy alternate options because of the ongoing energy crisis. What was only a imaginative and prescient for the longer term or “one thing that we’d ultimately transition to” has shortly been pushed to the forefront of our actuality as we glance to construct energy resilience and break away from dependence on fossil fuels. Regardless of many renewable energy choices rising, equivalent to {solar}, wind and even hydrogen, there may be one frequent theme: we’d like progressive energy storage options. Whereas the energy storage business is in its infancy, it’s continually evolving with progressive applied sciences. For instance, key elements drive progress within the energy storage sector and speed up improvement and deployment inside the subsequent few years. This text examines the principle progress elements for energy storage, how they form the renewable energy business, and why energy storage must stay as much as the hype to play a outstanding position within the world energy financial system.
Energy shortages and outages
Over the last a number of years, pure disasters, from wildfires to winter storms, have ravaged our present electric grid and disrupted the circulation of energy. The Texas blackout final winter, brought on by three winter storms, left millions of houses and companies with out electrical energy for days. And historical past may simply repeat itself as state leaders continue to urge native communities to be ready for doable energy shortages.
California additionally faces related challenges on the other facet of the pure catastrophe spectrum. With wildfires inflicting deliberate and unplanned energy outages, California residents are seeing an elevated danger of powerlines catching fire, inflicting large injury. Whereas California has confronted these points for years, the state has but to develop an answer to handle them.
Hurricane Ida additionally left hundreds of thousands of companies and houses from Louisiana to Massachusetts with excessive flooding and no energy for over per week, which restricted rehabilitation efforts and led to many deaths. We’ve discovered that no space of the nation is proof against energy outages brought on by pure disasters. As pure disasters grow to be extra frequent and extra intense, we have to develop and implement methods to bolster the prevailing electric grid. Deploying extra renewable energy and energy storage in our communities are two methods we will enhance the antifragility of the grid.
Elevated coverage by the brand new administration
Through the first two years of his presidency, Joe Biden has made it clear by way of deliberate and already handed laws that he’s pushing renewable energy and energy storage know-how innovation improvement and deployment ahead with federal coverage.
The infrastructure invoice was a very good begin and included $14 billion for resilience applications — the place energy storage is a probable funding — in addition to $11 billion in grant funding for states, utilities and different operators of energy storage that wish to make investments in resilience, based on Energy Storage News.
As well as, Joe Biden not too long ago invoked the Defense Production Act, which can permit america to safe sources of crucial supplies like lithium, nickel, cobalt, graphite and manganese which are used to make batteries for electric automobiles and energy storage. This comes as fuel costs have considerably elevated since final 12 months.
We nonetheless want extra federal laws to help analysis into technological improvements and the deployment of renewable energy and storage initiatives. We additionally want native and state governments to go insurance policies to deploy extra renewable energy and obtain carbon emissions discount objectives. Some states have already begun to do that, equivalent to California. Introducing extra federal and state insurance policies shall be an amazing driver and obligatory for elevated renewable energy and storage deployment.
Provide chain shortages
With COVID-19 nonetheless taking a world financial and social toll, together with overseas battle, the worldwide supply chain shortage stretches throughout practically each sector. The continued provide chain disruptions shall be a major issue within the energy transition. We have now already begun to see a number of new initiatives that can deliver manufacturing again to America. For instance, Tritium introduced its new manufacturing facility to construct chargers for EVs in Tennessee earlier this 12 months, and Intel has launched plans for a brand new semiconductor plant within the Midwest.
Including to the provision chain woes is a new investigation into circumvention tariffs on {solar} merchandise from Cambodia, Malaysia, Thailand and Vietnam. This subject has triggered the {solar} and storage business to inquire about growing stateside manufacturing. With these 4 international locations offering 84% of U.S. imports and plenty of deliveries being canceled because of the investigation, there’s a extreme hole available in the market that should be stuffed to maneuver {solar} and storage adoption ahead. It’s troublesome to foretell if this investigation will enhance home manufacturing of {solar} modules. New {solar} module applied sciences could now have an edge as firms look to undertake and set up what’s presently out there in the marketplace.
Extra investments in local weather know-how
Final 12 months, local weather tech obtained $37 billion in global venture capital, 2.5-times pre-pandemic funding ranges.
When america rejoined the Paris Settlement and attended COP26 this previous fall, it signaled that renewable energy initiatives had been as soon as once more a high precedence for the U.S. authorities. Likewise, VCs have adopted go well with and elevated capital investments for renewable energy firms and clear know-how startups. The inflow of capital will gasoline progressive companies to additional analysis, develop and scale their know-how, thus inflicting the business to flourish and develop at a way more speedy tempo.
Progress of EVs
The rising adoption of EVs can be an enormous consider shifting energy storage ahead. The soaring growth in EV sales is principally because of the inflow of recent EV varieties out there for buy and the surging fuel costs. As EV sales skyrocket, growing adoption of onsite energy storage and {solar} options will logically be the subsequent development within the energy transition. Folks will search for options that mitigate electrical energy prices by including onsite EV chargers.
World battle
As a consequence of worldwide instability, particularly in Ukraine, there’s a robust impetus for international locations worldwide to scale back dependence on fossil fuels. Pure fuel has now reached historically high prices because of sanctions towards Russia. This worth hike shall be one other issue to drive progress in energy storage funding, particularly in america.
As well as, cobalt and different uncommon metals come from unstable nations with rising civil unrest. Ukraine and Russia are additionally suppliers of lithium and nickel, used to provide EV batteries. These world conflicts can doubtlessly form how we supply the supplies wanted to construct batteries for energy storage programs. Relying on the end result, the business may have to look elsewhere or at different chemistries to help the scaling and progress of energy storage applied sciences.
The world is consistently altering and evolving, and with that comes distinctive challenges for all industries, together with energy. Regardless of waves of unrest and battle rippling all through the world, there’s a silver lining — all issues level to the truth that we have to provoke a major shift in the way in which we produce, retailer and use energy. Renewable sources and energy storage have emerged as probably the most sensible and economically viable options. The elements famous above will proceed to drive the renewable energy sector ahead and result in many new traits that we have now but to see in energy storage deployments and technological innovation. We don’t know what the way forward for energy storage will appear to be exactly. Nevertheless, we will glean that it’s going to increase the prevailing electric grid as we transfer to completely make the most of the clear energy we produce.
Keep tuned to {Solar} Energy World for the second a part of this text sequence.