Growing Demand for Solar Energy Generation to Fuel Growth of Thermal Energy Storage Market
Decarbonisation of the energy sector, and carbon emission reductions to limit global climate change are among the most dominant goals for governments, energy authorities, and utilities around the world. According to International Renewable Energy Agency (IRENA), accelerating renewable energy deployment, as well as electrification and improving electric grid energy efficiency, can assist achieve over 90% of the energy-related CO2 emission reductions required to reach the Paris Climate objectives by 2050. As the boom around solar energy grows denser, global thermal energy storage market is expected to experience notable growth in future.
The worldwide renewable energy installed capacity was 176 GW higher in 2020 than it was in 2019, a rise of 7.4% according to International Renewable Energy Agency (IRENA). Due to a recovery in the hydropower sector, generation growth has returned to its long-term pattern. Solar power continues to increase rapidly; in upcoming years, it surpasses biofuels as the third-largest source of renewable electricity generation. In 2021, solar and wind energy generation climbed by 28% and 11%, respectively. These two sources of energy have dominated renewable energy generation since 2019, accounting for 73 percent of growth.
The strong federal policy mechanisms to encourage the adoption of solar energy, such as the Investment Tax Credit for solar power, and increasing demand for clean energy from both the public and private sectors across all major economies in North America, Europe, and the Asia Pacific region. Thermal energy storage involves cooling or heating a storage medium, such as sand, rocks, water, or molten salt, to store solar thermal energy for eventual use in cooling and heating applications, as well as power generation. Thermal energy storage is critical for electricity storage in concentrating solar power plants, where solar heat may be stored and used to generate electricity when the sun is not shining. This allows CSP plants to operate without interruption. The single-tank thermocline system, two-tank indirect system, and two-tank direct system are three of the most common CSP thermal energy storage technologies. Better reliability increased overall efficiency, lower investment and operating expenses, and cost-effective operations are all advantages of thermal energy storage in CSP facilities. It can also help to minimise carbon dioxide emissions. As a result, the growth of thermal energy storage market is projected to be fuelled by the integration of thermal energy storage in CSP systems.
Increased Use of Sensible Heat Storage to Drive Thermal Energy Storage Market Growth
The sensible heat storage is expected to be the fastest-growing segment of the thermal energy storage market over the forecast period. The specific heat of a storage medium, which is retained in storage tanks with good thermal insulation, is used to store thermal energy in the form of sensible heat. Molten salt is the most frequently used and commercial heat storage medium, with a variety of commercial and industrial applications. Moten salts offer outstanding thermal characteristics and have been employed in over half of all operational thermal energy projects to date. Furthermore, when it comes to economies of scale, sensible heat storage technology is the most cost-effective. This is due to increased demand for solar thermal systems, as well as its usefulness in large-scale HVAC systems. A crucial characteristic of the technology is the ability to reversibly charge and discharge for an endless number of cycles, which will help to increase product penetration. Sensible heat storage material has a poor storage capacity per unit of storage volume.
Enhanced Demand for Renewable Energy to Drive Growth of Europe Thermal Energy Storage Market
Europe is the leading country for renewable energy in the year 2021. Spain is the largest contributor to the thermal energy storage market in the region with its huge number of operational TES projects, as well as the presence of key players like Abengoa Solar. For more than a decade, Europe has been implementing various thermal energy storage systems throughout the urban areas, in countries such as Spain, Austria, and Northern and Central Europe. The high energy use during the winter months and the exploration of renewable district heating methods are the main drivers of such a strategic step. To accommodate the ever-increasing seasonal and short-term storage demand, the region has planned even more large-scale thermal storage projects, the majority of which will use molten salt technology and subsurface hot water tanks. They will most likely act as multifunctional energy centres for future district heating sources, and other uses.
The Sun2Store thermal energy storage project in Spain was awarded to Malta Inc., a grid-scale thermal energy storage provider, by the European Union and the European Investment Bank in January 2022. It's a 1,000-MWh/ten-hour energy storage device that combines molten salt and pumped heat technology. The idea will be developed in collaboration with Alfa. Such advances are expected to have a substantial impact on the European thermal energy storage sector.
Global Thermal Energy Storage Market: Competitive Landscape
In July 2021, Vantaa Energy announced intentions to build a seasonal thermal energy storage plant in Vantaa, Finland. Hot water tunnels roughly 60 metres deep in bedrock will be part of the 90-GWh million cubic metre storage plant. The project is expected to be completed in 2026, according to the business and its project partners AFRY and YIT. On the other hand, in August 2021, The Vast Solar CSP Power Plant with Thermal Energy Storage is making progress, according to Vast Solar Pty. The 30,000-kilowatt project is currently under construction in Australia. The project is scheduled to be completed in 2022.
A few of the players in the thermal energy storage market include BrightSource Energy Inc., SolarReserve LL, Vantaa Energy, Ice Energy, Abengoa SA, Caldwell Energy, Vast Solar Pty, Baltimore Aircoil Company, Terrafore Technologies LLC, Cryogel, and Steffes Corporation.
Global Thermal Energy Storage Market is Segmented as Below:
By Product Type
By Storage Material
By End-user Outlook
Key Elements Included In The Study: Global Thermal Energy Storage Market
Post Sale Support, Research Updates & Offerings
We value the trust shown by our customers in Fairfield Market Research. We support our clients through our post sale support, research updates and offerings.
Under uncertainty, traditional approaches to strategic planning can be downright dangerous. True ambiguity is no basis to forecast the future – degree of risk, the magnitude of circumstances, conditions and consequences are not known or unpredictable. To avoid dangerous binary views of uncertainty; strategic posture, moves and actions through market research is the best bet.Read more