The rapidly increasing penetration of intermittent renewable energy on grids worldwide and volatility of load profiles are encouraging demand for long duration energy storage. Aside from pumped hydro, compressed air energy storage (CAES) is the only commercial long duration storage technology to have been deployed at utility scale. As a result, demand for traditional underground CAES that can be deployed at bulk scale, which has been dormant since 1991, will pick up meaningfully over the next few years.
The unique siting requirements of traditional underground CAES, however, present substantial development risk and limit the technology’s outlook. Higher efficiency, next-generation CAES technologies that are not limited by geological considerations are on the cusp of commercialization, and are well positioned to address the gap in availability of long duration energy storage technology that can be sited where needed. Navigant Research forecasts that worldwide installed capacity of compressed air energy storage systems will reach 11.2 GW by 2023.
This Navigant Research report analyzes the global market opportunity for both traditional underground CAES and next-generation CAES technologies across five key application segments: wind energy integration, solar energy integration, grid asset optimization, transmission and distribution deferral, and ancillary services. The report provides a comprehensive assessment of the demand drivers, policy factors, and technology issues associated with the market for CAES. Key industry players are profiled, and worldwide capacity and revenue forecasts, segmented by application, technology, and region, extend through 2023.