US & global renewable energy consumption continues to grow. According to the U.S. Energy Information Administration (EIA), 2020 saw the consumption of renewable energy in the US grow for the fifth year in a row, providing 12% of total US energy consumption. Wind energy accounted for approximately 26%, hydro provided and 22% and solar 11% of US renewable energy consumption in 2020.
As the renewables sector continues to expand, flexible grid-balancing tools are required more than ever to continue the clean energy transition. The ability to store and discharge electricity provides renewable operators on and off the grid the ability to manage power flows for maximum profitability. Commercial battery adoption is increasingly providing the solution as cost plummets and adoption increases.
Battery pack prices have fallen fast – down 89% since 2010. As the cost has fallen, the US energy storage market is now growing fast and it is expected that the global market will see similar growth in the coming years. The US installed 3,115MWh of storage from 2013 through 2019, a total that 2020 beat in a single year. More than 2,100 megawatt-hours (MWh) of energy storage was installed in the US in the final quarter of 2020 alone.
ETRM and CTRM systems are used today by energy participants for the development, procurement, management, moving and trading of electricity. Increasingly, participants will need to rely on their commodity and energy trading and risk management platforms to help identify how power storage can be captured and how the related risk can be evaluated.