Economic Case for Batteries for Energy Storage

Question: Write a report that analyses current major issues receiving significant attention with regard to sustainability is there an economic case for batteries,for energy storage? Answer: Introduction Australia has various unexploited resources of renewable energy. The energy department of Australia has indentified that generation and use of traditional power system will incur high cost. The demand for energy is continuously increasing across the globe. Hence, the storage industry has a major role to play in supporting the growing demand for energy. Energy storage system has the potential to break the nexus between the demand for electricity and its production. It has been argued that the storage industry of Australia needs to enhance its potential and activities for achieving the growing demand in a sustainable manner (GIFFORD, 2014). This report focuses on discussing the economic case for batteries in order to store energy. Additionally, this report will provide an insight to the energy industry of Australia by illustrating the present demand for energy storage in Australia and economic case for meeting the demand for batteries in order to store energy (Laird, 2012). Energy Storage Sector of Australia with Reference to Other Countries It has been observed that in Australia, supply of power can be categorized into four separate groups, for example, generation, transmission, retail and dissemination. However, some other nations supply their power in three separate routes, for example, production, transmission and circulation. Nonetheless, most of the nations across the globe emphasizes on giving power supply through coal or other associated materials. However, in case of Australia, the nation has expanded its resources of supplying power across the nation by using renewable resources. The renewable resources include wind, hydro and solar power. It has been found that, most of the countries have been generating power through the blazing fossils, for example, oil, gas, coal, and so forth. Australia is likewise one of the nations that have conventionally utilized burning fossils in order to supply energy in the large scale power stations. As per the administrative authority of Australia, the major resources of renewable energy such as hydro, wind, and solar are spotted far. Hence, moving of these power resources across the long distance, the government needs to contribute additional capital for transmission of the system for delivering electricity in the demand center. For minimizing the limitation, legislature of Australia has focused on implementation of a small scale network for distribution in order to supply energy to the residence, industries etc (Laird, 2012). It has been found that the energy of electric cannot be stored in the network. Subsequently, Australia utilizes batteries for storing energy. Additionally the Australian government has been utilizing pipes for storing the gas or water energy resources in the network. In case of Australia, it has been observed that for consumption of electricity through storing energy by utilization of chemical batteries are widely appreciated. In order to generate energy in large scale along with the circulation, it has been comprehended that batteries are the more efficient as well as productive for generation as well as storing energy at the time of consumption. It has been found that the development of chemical battery in order to store energy at the time of electricity consumption is a better option than other mechanisms for storing energy. The direct cost associated with development of batteries on the basis of chemical energy storage framework is estimated to be significantly low. Additionally, it has been observed that the batteries lead to loss of lower amount of electricity while changing it into a storage format. The largest energy storage resource of the globe has been developed by the energy investment group though development of the solar energy syst em. For developing the battery storage project in Australia has invested greater than 2 million dollars (PARKINSON, 2014). On the other hand, the other countries such as United States and various countries from Europe is significantly less in comparison to Australia. Present and Future Scenario of Energy Storing project in Australia Current Situation: The largest battery bank of the globe has been constructed by Australian Energy Storage. In Australia, the constructor of energy storage has been encouraging energy storage of more than 400 MWH. It has demonstrated that it has been providing more than 100 Mega Watt with the aid of chemical lithium battery innovation. It has been reported that for the battery storage venture, Australia contributes greater capital compared to other nations in the globe. According to the report on energy storage, it can be found that a company from Australia, ASX owns the entire business power. On the other hand, the organization associated with another company, Rio-Tinto that helps in serving the remote bauxite operation in Queensland. It has enhanced the energy production to 6.7 mega Watt instead of 1.7 mega Watt (PARKINSON, 2014). As per the CEO and Director of Mpower, significant potential of market growth has been identified in case of energy storage and savings with the aid of chemical battery. The Australian households can easily bypass the electricity retailers (PARKINSON, 2014). Hence, in future, the Australians will focus on purchasing electricity from the open market with the aid of new technology which has been developed on the basis of chemical battery. It has been found that the Australians have recognized a company based in Canberra which has already installed battery storage in 6 solar homes in Canberra and has undertaken their newly developed technology. Renewable Energy Agency of Australia has invested around 445,000 dollars for this project in order to assist the ongoing activities in the ear of battery energy storage. Presently, various organizations in Australia have been undertaking more than 900,000 projects. Reposit Power is one of the companies dealing with the battery based energy storag e project in Australia and it has claimed to be first energy storage program in the world which has derived the seat of storing energy. Future Scenario: The Renewable Energy Agency of Australia has already assessed the development of the energy storing system with the aid of simulation of the scenario in terms of the designing as well as development of the energy storing system at the time of energy consumption in Australia. The pattern of simulation exhibits that development of storing system of energy with the aid of chemical based battery helps in reducing the usage of the energy as well as fuel consumption (Rentzing, 2014). Presenting the new engineering and technology, the Australian government can create the low renewable energy infiltration. The government of Australia had carried out the energy storage venture focused around battery in 2011 and they proceed with their development project till 2030. Additionally, the infrastructure for generating electricity in Australia has focused on the purpose of different energy saving project which undertakes the essential steps for supporting the future economy of the nation (SchloÃÅ'à ‹â€ gl, 2013). Greenhouse gas in Australia has a significant impact on the generation of electricity. Process of Life Cycle Management Application for Energy Storage Readily Implementation Remote Electricity System and Fringe System In order store energy with the aid of battery, remote system will be applied as the procedure of the remote system in entirely dependent on the potential of generation of electricity. However, diesel plant supported the electricity generation in local areas. The energy storage department needs to shift its energy saving lifecycle to the renewable energy system. For achieving the larger grid of electricity, the energy resource department focuses on applying the procedure of connecting to the energy transmission network. Fringe system hang in the array of the long signal network and assists in maintain the energy regulation at the time of problems (Amin et al., 2012). Additionally, limitation of the infrastructure leads to increase in cost in order to strengthen the connections. Network Support The cost of electricity is high in Australia. Due to population growth demand for electricity is enhancing. For maintaining the devices responsible for consumption of electricity, the Australian government has focused on the demand side participation. It will help in the promotion of technology of consumption of energy (SchloÃÅ'ˆgl, 2013). Market Participation For storing electricity energy, market participation is essential. The national electricity market has provided support in order to start the wholesale market of the storage energy. It has been found that the operation of the National Electricity market has a connection with the global energy sector for power storage. Grid Stability For applying in the life cycle management in order to store energy, the demand supply will be changed in the AC electricity grid. The frequency as well as stability of each grid needs to be observed. The frequency control service will provide type of additional service which will be allowed in specifying market design (Rentzing, 2014). Residential Storage System In order to apply the life cycle management in case of energy storing, distributed renewable generations must be adopted for the households in Australia. Residential storage system will be significantly helpful in avoiding huge electricity bills. Challenges Technical Challenges Controlling the interface is a major challenge encountered while implementing the life cycle management procedure. In case of the utility battery no standard has been followed by the vendors in the network resource (Zhang, 2013). Economical Challenges As the unstructured electricity industry in Australia can be captured by a single vendor of all the storage benefits, the government cannot easily capture the service (Steinmann, 2014). Cultural Challenges For development of the energy storage system with the aid of chemical battery, most of the engineers will provide a non-familiar technology for managing the AC system. It is misunderstood in terms of future growth, requirements, and possibilities (Zhang, 2013). Use of UNEP Life Cycle Management Process Details Set Policies Organize Survey Set Goals Energy Storage for Addressing Issues Energy Storage for Addressing Issues There are different types of energy storage systems that permit in putting away energy, for example, electrical energy storage, thermal energy storage, chemical energy storage, electrochemical energy storage and mechanical energy storage etc. Then again, as per the issues of present circumstance in energy storage in Australia, electrochemical energy storage will be suitable. It is the best system of putting away energy (SchloÃÅ'ˆgl, 2013). There are a few gadgets includes, for example, battery, fuel cell, and so forth that helps in conversion of chemical energy into electricity. Battery has enormous potential of storage as well as density of charge. Additionally, the density of energy in batter is superior in comparison to other devices (Steinmann, 2014). Voltage effectiveness of battery is valuable and the degree of yield of a battery is considerably more proficient in comparison to other gadgets. Electrochemical energy storage gadgets, for example, battery permit in utilizing two sorts of batteries, for example, non rechargeable batteries and the chargeable batteries. Chargeable batteries have extensive capacity as well as have the ability of re-energize. The electro code of rechargeable batteries has the capacity go before the responses in both directions. It encourages giving free energy in the non spontaneous bearing that put away extensive variety of vitality and supply energy at the time of power consumption. In this way, utilizing electrochemical vitality stockpiling framework, Australia has the capacity lessen the issues of energy utilization along with capital speculation for gaining different resources rather than coal, fuel, and so forth. Fuel cell is also an important type of electrochemical energy storage (SchloÃÅ'ˆ gl, 2013). Fuel cell helps in conversion of chemical energy into electricity. Conclusion This paper has focused on analysis of the present situation of energy storage industry in Australia. The current circumstance of the Australia is suitable for adoption of the large scale of alternative mechanism for energy including battery for storing energy. The wholesale market of electricity needs to be applied as it will be operating in the western region of Australia where the population is more than 2 million. Additionally, use of natural resources such as hydro, solar and wind instead of gas, fuel and oil will be helpful in development of a scrap electrical generation capacity. The policy makers of Australia have been significantly focusing upon the cost of greenhouse gas. References Amin, N., Belusko, M., Bruno, F. and Liu, M. (2012). Optimising PCM thermal storage systems for maximum energy storage effectiveness.Solar Energy, 86(9), pp.2263-2272. Chopra, N. and Fiechter, S. (2012). Energy conversion and storage.Nanomaterials and Energy, 1(2), pp.63-64. GIFFORD, J. (2014).Solar plus storage becoming "new normal" in rural and remote Australia. Laird, J. (2012). Storage solutions.Renewable Energy Focus, 13(3), pp.42-46. PARKINSON, G. (2014).Aus's largest energy storage system to back-up solar in QLD - Solar Choice. PARKINSON, G. (2014).Energy Storage startup could allow solar homes to bypass electricity retailers - Solar Choice. [online] Solarchoice.net.au Rentzing, S. 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