Published Date : Dec 03, 2015
Climate change is the new agenda of nations from various continents. The recently announced Mission Innovation focuses on climate change by increasing investment substantially in the startups in renewable energy sector. Many developed companies will be investing heavily to drive this initiative, at the same time many emerging economies too are participating in this initiative to reduce the amount of greenhouse gas emissions.
Bill Gates is appealing to several investors to invest in the renewable energy sector to make a positive change to reduce the impact on climate we have done over the decades. This initiative aims to drive innovation for clean energy. However, climate change initiatives such as Mission Innovation will also drive other sectors along with it. One of the sector that will greatly benefit from these climate change initiatives is the energy storage sector. Presently, the U.S. is the dominant market for energy storage.
The key driving forces to develop energy storage sector in the coming few years along with the U.S. will be Japan and South Korea. These three nations would exceed around 100 MW of annual installation by the end of 2016 and would collectively contribute 60 per cent of the world’s global energy storage installation by 2016. Driven by these trends, energy storage costs will further decrease. In addition to this, Tesla’s new Gigafactory is projected to decrease the production costs of Lithium ion batteries by around 30 per cent.
The performance of the global energy storage market will in turn impact the renewable energy market as most of these renewable energy sources suffer due to intermittency issues. With proper energy storage system in place, the problem of intermittent power generation can be solved by a great degree.