lithium-ion for stationary applications – what’s in store?
TRANSCRIPT
Lithium-Ion for Stationary Applications – What’s in Store?
Suba Arunkumar, Industry Manager
Energy & Power Systems Group
March 17, 2010
2
Focus Points
� Overview of Lithium-ion
� Industrial Lithium-ion - Overview
� Emerging Markets
� Role and Importance of Battery
� Energy Market – Overview
� GDP Growth and Power Demand
� Countries Involved
� Supportive Factors
� Market Trends
� Participants
� Conclusion
Content
3
Overview of Lithium-Ion
• All are familiar with the distinct advantages of
lithium-ion batteries
• These distinct advantages make lithium-ion chemistry
to increase end-user applications by replacing existing chemistries
• Light weight• High Energy Density• Better Efficiency and performance• No memory effect• Long cycle life
• Expensive than other chemistries• Safety concerns
4
Overview of Industrial Lithium-ion
Data collection equipment
Medical Equipment
Cordless power tools
Military Equipment
5
Emerging Markets
Automotive applications began in 2009
Stationary applications are in its initial stages, with highpotential for growth
6
Role and Importance of Battery
Battery Bank
InverterStatic Switch
Input
ChargerOutput
• Performance of a backup equipment is largely dependent on the performance of the battery. • Improvement in battery chemistry and technology could enhance the backup equipment performanceand its life cycle
• Lithium-ion batteries offer the advantage of being environmentally friendly
Battery bank is the integral element in all stationary application. Lithium-ion batteries currently used in low- andMedium-power stationary applications. This chemistry reduces weight and foot print of the equipment.
7
Energy Market - Overview
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
2007 2008 2009 2010 2011 2012 2013 2014 2015
Year
Qu
ad
rill
ion
Btu
Biomass Solar and Wind
Source: U.S Dept of Energy
Growth in renewable energy production capacity is evident from 2008 to 2013. This directly influences the battery market for storage
8
Countries Involved
Germany Spain
IrelandCanada
DenmarkU.K.
U.S.
9
GDP Growth and Power Demand
• GDP growth is directly proportional to increase in power demand.
• Rate of growth is based on each geographic region.
• Currently, China is leading other countries such as Australia and India in terms of increase in power demand.
• Similarly, new installations to increase power generation is high in China, compared with that of other countries.
• Shortage of power generation leads to increased demand for backup and stationary equipment.
Power Demand
GDP Growth
Year
10
Supportive Factors
� Government initiatives
• The stimulus bill announced in 2009, has a direct and indirect influence in the energy storage technology market
� Inherent features
• The inherent features of lithium-ion chemistry favors energy storage applications, especially in the renewable energy sector using PV cells, wind energy and the like
� Potential in stationary utility energy storage
• Although in 2008 and 2009, the installations are very few, many participants are involved in large installations. By 2015, more than 1000MW of energy storage installations are expected by this chemistry
� Dynamic and competitive environment among participants
• All prominent lithium-ion start-ups are involved in installing an energy storage unit in the developed countries. This healthy competition drives growth in this market.
11
Market Trends
2009
Lithium-ion
Lithium-ion
Lead Acid
Lead AcidSodium Sulphur
SodiumSulphur
CAGR > 100%
2015
Megaw
atts o
f In
sta
lled E
nerg
y S
tora
ge
Source: Frost & Sullivan
12
Market Trends
10KW
Dis
charg
e T
ime a
t R
ate
d P
ow
er
100KW 1MW
Lithium-ion
Lead Acid
10MW
Suitable for UPS and gridsupport applications up to
10MW
Suitable for UPS and gridsupport applications
Source: Frost & Sullivan
13
Participants
Source: Frost & Sullivan
14
Conclusion
• Lithium-ion batteries for stationary applications is an emerging market
• Currently, low- and medium-power equipments use cylindrical lithium-ion cells for this application
• However, large format lithium-ion batteries being used for stationary applications is yet to gain prominence
• Renewable energy sources such as wind and solar power generation are likely to employ more of lithium-ion battery packs for energy storage
• This market is likely to make significant impact and revenues in the next couple of years.
• By 2015, the market is likely to generate more than $500 million by revenues for this application
• In short, the market has a long way to go to replace the existing lead acid batteries in the stationary application
15
Next Steps
� Request a proposal for a Growth Partnership Service to support you and your team to accelerate the growth of your company. ([email protected])1-877-GoFrost (1-877-463-7678)
� Join us at our annual Growth, Innovation, and Leadership 2009: A Frost & Sullivan Global Congress on Corporate Growth, September 2010, Silicon Valley, California (www.gil-global.com)
� Register for the next Chairman’s Series on Growth:
Accelerating Growth through Vertical Market Expansion: A How-To Primer
Tues, April 6, 2010, 2 pm ET (http://www.frost.com/growth)
� Register for Frost & Sullivan’s Growth Opportunity Newsletters and keepabreast of innovative growth opportunities(www.frost.com/news)
16
Your Feedback is Important to Us
Growth Forecasts?
Competitive Structure?
Emerging Trends?
Strategic Recommendations?
Other?
Please inform us by taking our survey.
What would you like to see from Frost & Sullivan?
17
Follow Frost & Sullivan on Twitter
http://twitter.com/Frost_Sullivan
Frost & Sullivan on Twitter
18
For Additional Information
Jake Wengroff
Global Director
Corporate Communications
(210) [email protected]
Diana Bragg
Sales Manager
Energy & Power Systems
(210) 247-3879
Vishal Sapru
Industry Manager
Energy & Power Systems
(210) 348-1016