Disruption is the new status quo these days-Quick Change along with IT and fast pace of scientific research is the new normCurrently Power and Utilities sector is going througha disruptive phase. The role of digitization, decentralization and zero carbon emissionsgoals are going to change the energy retail markets all over the world.
Renewable energy sector is finally breakingfree.renewable energy, and Smart Grid programs israpidly growing Green energy programs set the stage for newpower sector business models. With a supportive policy, long term visionalong with redefined technology, Costs shall come down.Energy storage (Batteries) is set to jump startthe clean energy transition while at the same time disrupting the traditionalbusiness model.While the power and utilities sector has beenadapting the change in terms of new types of energy generation such asrenewables, the rapid spread of battery technology will be much harder to tointegrate into legacy business models.
Current challenges faced in the power sector is– Grid Balancing, supply and demand and Battery storage may be the key tosolving multiple challenges and also decarbonizing the electricity supply.Energy storage shall grow by leaps and boundsover the next 5 years. The possibility presented by Electric vehicles have drivenenormous investment in battery technology as a result of which the cost hasdeclined dramatically. This has resulted in battery storage playing animportant role within power generation, distribution and supply.With battery costs falling every year we seebatteries being placed alongside renewables in grid , hence displacing expensivesmall scale fossil fuels generation using diesel and fuel oilBatteries shall provide short-term supply or demandto keep electricity grids in equilibrium hence resulting in investment savingsinto developing distribution networks.
It becomes economical to use batteries duringload shifting. During low prices , batteries can be used for charging andduring peak time where prices are high, batteries can offset the high prices byproviding energy to the gridStored solar or wind power can be used byconsumers and industrial users to meet with their respective demands in the eveningsand high usage times respectively thereby being independent and off the grid.The role in the market is going to shiftwherein consumers shall just not be consumers but shall also be playing a Centrerole in energy storage and giving back to the grid To succeed in this industry collaboration isthe key and all have to come together and work with each other in order tosucceed in the market.Large utilities with the help of smart metersand Internet of things (IOT’s) shall have closer relationships with theconsumers thereby allowing them to diversify themselves and provide high valueadded services.