Wide Adoption of Smart Grid Technology in Asia-Pacific Driving Demand for Energy Storage Technology

It is now common knowledge that the excessive consumption of fossil fuels for energy generation purposes is causing them to deplete at a swift pace. The surging population around the world is only making the situation worse. The world is now largely dependent on energy, and the depletion of fossil fuels is making it harder to cater to the energy needs of the booming population.

Fossil fuels are non-renewable resources, which means that once they are used, they can’t be replenished. A large part of the available resources has already been used. Fossil fuels are not the ideal way to go when it comes to power generation, since they cause harm to nature. The burning of fossil fuels for generating power leads to the emission of carbon dioxide, which is main the cause of air pollution and depletion of the ozone layer.

It is because of all these factors that the focus on renewable resources for generating energy has risen substantially. Renewable resources, such as the wind and sunlight, are present in abundance, do not cause as much harm to the environment, and can potentially provide the solution to the current energy crisis.

A major problem with these energy resources is that their output is variable. For example, solar panels during summer may produce more energy than needed, but will fail to produce enough power during the rainy season. In order to solve this problem of demand and supply, energy storage systems are used.

A study by P&S Intelligence states that the global energy storage market reached a capacity of 171,039.3 MW in 2019, to which 69,917.6 MW is expected to be added by 2030. The market is ultimately expected to reach 240,956.9 MW, at a 3.3% CAGR during 2020–2030.

Increasing Energy Demand Driving Uptake of Energy Storage Systems in Asia-Pacific

The population in countries including India and China is rising at a rapid pace, which is why the demand for electricity will surge in the region in the next few years. Moreover, while the demand and supply scenario in North America and Europe is quite stable, the APAC region still lacks the necessary resources for catering to the energy needs of people.

At the present time, energy storage systems are being considered a necessary upgradation that is needed in smart grid technologies. As the need for stable grids and focus on smart grids are growing, it is predicted that the region will invest widely in energy storage technologies in the coming years.

The adoption of smart grids in India, Japan, and China has risen considerably since the past few years. Additionally, the focus on unconventional energy resources is also growing in the region, on account of the rapidly increasing pollution. All these factors are expected to lead to a high demand for energy storage systems in the region in near future.

Conclusion

As the need for clean and sustainable means of generating electricity is growing, the dependence on renewable resources is increasing as well. As the energy generated by these sources cannot be used up to their full potential without energy storage systems, the demand for the latter is bound to rise across the globe.