|By Business Wire||
|December 6, 2013 11:16 AM EST||
Driven by growing penetration of intermittent renewable energy, increasingly constrained grid conditions, and the need for investments in electricity infrastructure, compressed air energy storage (CAES) – a technology that has been commercially available for more than 30 years – is enjoying a surge of renewed interest. In Asia Pacific, Europe, and North America, new installations of CAES are expected to increase steadily over the next 10 years. Click to tweet: According to a recent report from Navigant Research, new system installation revenue for CAES will reach $4.8 billion annually by 2023.
“With a total of 400 megawatts installed worldwide, CAES is the second most prevalent form of energy storage on the grid today after pumped hydro,” says Kerry-Ann Adamson, research director with Navigant Research. “At the same time, higher-efficiency next-generation CAES technology, which promises modular and scalable aboveground CAES, is also nearing commercialization.”
Next-generation isothermal, or adiabatic, CAES, which can be sited anywhere and conveniently scaled using modular units, will address the locational and scalability constraints faced by traditional CAES, according to the report. Due to those constraints, CAES development has largely been dormant for the past several years, and some high-profile proposed projects have been abandoned due to geological uncertainty or a lack of sufficient forecast revenue
The report, “Compressed Air Energy Storage”, analyzes the global market opportunity for both traditional underground CAES and next-generation CAES technologies across five key application segments: wind energy integration, solar energy integration, grid asset optimization, transmission and distribution deferral, and ancillary services. The report provides a comprehensive assessment of the demand drivers, policy factors, and technology issues associated with the market for CAES. Key industry players are profiled, and worldwide capacity and revenue forecasts, segmented by application, technology, and region, extend through 2023. An Executive Summary of the report is available for free download on the Navigant Research website.
About Navigant Research
Navigant Research, the dedicated research arm of Navigant, provides market research and benchmarking services for rapidly changing and often highly regulated industries. In the energy sector, Navigant Research focuses on in-depth analysis and reporting about global clean technology markets. The team’s research methodology combines supply-side industry analysis, end-user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of the Smart Energy, Smart Utilities, Smart Transportation, and Smart Buildings sectors. Additional information about Navigant Research can be found at www.navigantresearch.com.
Navigant is a specialized, global expert services firm dedicated to assisting clients in creating and protecting value in the face of critical business risks and opportunities. Through senior level engagement with clients, Navigant professionals combine technical expertise in Disputes and Investigations, Economics, Financial Advisory and Management Consulting, with business pragmatism in the highly regulated Construction, Energy, Financial Services and Healthcare industries to support clients in addressing their most critical business needs. More information about Navigant can be found at www.navigant.com.
* The information contained in this press release concerning the report, “Compressed Air Energy Storage,” is a summary and reflects Navigant Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.