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SEPTEMBER 2009
Potential abounds for green energy storage industry
Alternative energy storage solutions are now opening
up as a significant industry with immense potential.
Different technologies in the developmental, near-commercialization
and commercialized stages are garnering increasing attention.
Catering to specialized applications and end-user markets,
these technologies, if understood and utilized appropriately,
can be highly beneficial to end users in the long term.
New analysis from Frost & Sullivan European Market
for Alternative Energy Storage Solutions, identifies
alternative energy solutions as the next big thing in
the energy market. The following technologies are covered
in this research: thermal energy storage, compressed
air energy storage, flywheel, fuel cells and ultracapacitors.
“The need for environment-friendly storage technologies
rather than conventional batteries is promoting interest
in novel energy storage technologies,” said Frost & Sullivan
research manager, Malavika Tohani. “Moreover, the demand
for storage solutions with a long lifetime is supporting
R&D into new technologies.”
The future of the energy market hinges largely on environmental
concerns. Heightened apprehensions over the environmental
pollution caused by traditional lead-acid batteries have
prompted several manufacturers to foray into green energy
storage methods. Manufacturers in the alternative energy
storage industry are attempting to devise cost-effective
solutions that address energy storage concerns in a specialized
way.
However, the high cost of alternative energy storage
solutions is threatening market prospects. It is likely
to hinder large-scale commercialization and result in
limited uptake.
“Consumers focusing on short-term benefits rather than
long-term returns are discouraged by the high initial
investment required by alternative energy storage technologies,”
explained Tohani. “The sizeable outlay required for alternative
energy storage technologies in comparison to conventional
batteries is dampening demand for the former.”
Understanding the most suitable application and identifying
the appropriate end-user market for each technology are
critical to boosting uptake. Market participants need
to focus on R&D in order to reduce costs. To support
volume sales, companies also need to educate consumers
on the specific and effective uses of alternative energy
storage as well as emphasize the advantages of various
technologies.
“Manufacturers are confident of achieving significant
reductions in the prices of alternative energy storage
solutions over the next five years,” remarked Tohani.
“In addition, enlightening consumers about these technologies
will enable manufacturers to tap into unprecedented opportunities
for growth and expansion.”
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