Batteries are Crucial for Success in the Green Transition - This is why
Everyone is talking about the green transition, and the goal is clear: The world must become electric and renewable.
Energy storage through batteries is essential to make that happen.
Sofi Hildonen, EVP Business Development at Elinor Batteries
In the fight against climate change, the world faces a massive task: transforming the entire global energy system.
Today, fossil fuels like oil, gas, and coal are used for transportation, industrial production, power supply, and household heating, among other things. But we must shift away from fossil energy sources as soon as possible and transition to green and renewable alternatives.
This means that a massive expansion of renewable energy production is in order, and solar and wind power are already being rapidly deployed all over the world.
However, the green transition is not as simple as just increasing the production of renewable energy. What happens to the energy when the wind dies down and the sun sets? Can our energy system handle an electricity production that is both irregular and many times larger than it is today?
“The batteries’ role in the coming years is to enable a new era of clean energy that will shape how we live, work, and interact with the world around us.”
Transitioning the Energy System
Our power grid was built in a world driven by oil, gas, and regulated hydropower. It is challenging for the infrastructure when so much more electrical energy enters the mix in a relatively short time.
Renewable energy sources like solar and wind are naturally variable because they depend on weather conditions. This can lead to unstable and irregular energy production, which in turn can pose challenges in balancing energy supply and demand. Increased renewable energy production also requires upgrading and expanding the existing network infrastructure to distribute and incorporate the energy efficiently.
Lastly, increased renewable energy production also requires solutions for storing electricity. Without this, we cannot harness the energy, and the green transition will halt.
Renewable Growth Facts
The total capacity of the world's renewable power production was 3870 GW at the end of 2023, according to the International Renewable Energy Agency (IRENA). This means that 374 GW was added to the global renewable capacity this year. In fact, a whopping 86 percent of all power production capacity added in 2023 came from renewable energy. However, the pace of growth isn’t fast enough to reach the 7,2 TW goal within 7 years, that aligns with The World Energy Transitions Outlook 1,5 degrees scenario.
World Energy Consumption by source
Energy Storage in Batteries
Energy can be stored in many different ways. Large reservoirs have long been the most common solution for storing and balancing energy on a large scale. However, the future need will grow to where today's reservoirs will not suffice. At the same time, we will need solutions that are more flexible and efficient.
This primarily involves batteries.
Large, efficient, mobile and stationary battery packs. Battery systems that operate at national and regional levels, contributing to balancing power production and energy supply. But also smaller battery systems that enable local energy storage – for individuals, businesses, and locations.
“The batteries’ role in the coming years is to enable a new era of clean energy that will shape how we live, work, and interact with the world around us.”
Batteries Become Critical
Modern battery systems are already being used in many contexts. Norway is a pioneer in electric transportation, with over half a million electric cars already on the roads.
But the tasks that batteries solve will become both larger and different than they are today. The demand for stationary battery systems is already rising – such as for charging stations for ferries and public transportation or container-sized batteries that supply construction sites with power. In just a few years, battery systems will also be able to relieve the power grid in a city and be integrated into new construction projects.
This way, batteries can help solve the problem of irregular production from new energy sources like solar and wind while also relieving an undersized power grid.
“Simply put, the green transition requires all industries, sectors, and parts of our infrastructure to switch to electric energy. And in such a society, batteries will play a critical role.”
Energy storage plays a critical role in the green transition for several reasons:
Renewable energy sources like solar and wind are variable and unpredictable. Energy storage can help smooth out fluctuations in energy production and ensure power is available when needed.
Energy storage systems can help balance the energy grid by storing excess energy when demand is low and releasing it when demand increases.
Households can use energy storage to store, for example, solar energy and use it when electricity prices are high.
Reducing dependence on fossil fuels: By storing energy from renewable sources, energy storage can reduce the need for fossil fuels to meet energy demand, thus reducing greenhouse gas emissions.
Energy storage can also improve energy efficiency by reducing energy loss in transmission and distribution systems and supporting energy-saving measures.
Industries with high power requirements for shorter periods (such as machine startups) can be developed with less need for expensive and space-consuming power grids.
Sources:
IEA: https://www.iea.org/energy-system/electricity/grid-scale-storage
Our World in Data: https://ourworldindata.org/energy-mix#:~:text=Globally%20we%20get%20the%20largest,than%2080%25%20of%20energy%20consumption.
NVE: https://www.nve.no/energi/energisystem/energibruk/energilagring-og-hydrogen/