An increase in interest in energy storage will help spur opportunities for thermal energy storage (TES) in the U.S., according to a report from Pike Research, a part of Navigant’s Energy Practice. TES is also used to enhance electricity production at concentrated solar power projects by storing heat for later power generation.
The research said installed TES capacity in the U.S. will increase to 7.2 GW by 2020, up from 2.7 GW in 2011. The annual U.S. market for incremental TES capacity totals $268 million, with 246 MW of new capacity installed in 2011 in five market segments: packaged air conditioning, chiller TES systems, district energy, residential heat TES and commercial heat TES.
“With the exception of pumped hydroelectric storage, which dwarfs the installed capacity of all other commercially available energy storage technologies, TES is currently the most common form of storage available,” says research director Kerry-Ann Adamson. “Although other storage media, especially batteries, are expected to grow significantly faster than TES, TES revenue will continue to increase with global revenue from new TES installations forecast to surpass $3.5 billion by 2020.”
The TES market in Europe will likely see the strongest growth thanks to the European Union’s heavy emphasis on energy efficiency initiatives and the rise in volatile renewable electricity generation, according to the report. Under a conservative estimate of 2020 market activity, Pike Research forecasts that there will be about 19 GW of cumulative TES installations in Europe by the end of the decade, equaling 2 GW of new capacity per year by 2020.
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