Development of energy storage is of paramount importance for the future of the global energy sector. The total capacity of energy storage facilities around the world has reached almost 170 GW, the vast majority of them being pumped hydroelectric energy storage facilities, note Analytical Center experts in their new energy bulletin titled Energy Storage in the Electric Power Industry.
According to the experts, optimistic forecasts suggest that over the next 20 years total energy storage capacity will increase 3-fold, however, there are a number of uncertainties at play here. In Russia there are legal barriers preventing the development of energy storage services.
The ease of getting one's business connected to power is one of the traditional metrics characterizing the quality of a business environment. "Russia has really made progress in this area: the number of procedures that must be completed to get connected to the grid has been reduced from ten to three while the cost of getting a business on the power grid has gone down from 1574% to 42% of per capita GDP. What's still left to be done is to achieve something similar when it comes to getting connected to natural gas and heating and then all of these factors combined may become a major driver for the development of small and medium sized businesses," the experts write in their bulletin.
The analysts note that the development of the global LNG market continues apace, but so far it has not translated into dramatic changes in the market, the way it did immediately after the great recession. Ultimately LNG is competing against natural gas delivered via pipelines on the basis of market mechanisms and rational behavior. If this state of affairs continued into the future, that would serve the interests of natural gas consuming countries. However, politics has been interfering in this process, especially when it comes to promoting the interests of the new exporters from across the Atlantic who have been trying to break into markets that have traditionally been dominated by pipeline natural gas (Europe). These processes are driving up the investment costs of all parties. The future of the rational global natural gas supply system will to a large extent be determined not by the efficiency of supply or the climate change agenda (as per the 2015 Paris Accords), but rather by the security of supply policy, the interests of natural gas exporting companies and the international political situation, the experts believe.
For more information see the bulletin Energy Storage in the Electric Power Industry.
For the other energy bulletins see Publications.