Approximately 900 KWh of solar energy falls on each square metre of Europe and the USA each year. New York and London receive in excess of 1000 TWh of solar energy per annum. However, this energy is diffuse and the majority of it is received at times when people are trying to cool rather than heat their homes and offices. Nearer the equator the solar energy available per square metre is far higher than 900KWh per annum – however local demand for this energy is lower than it is outside of the solar belt. While wind energy is available outside of the solar belt and during darkness hours it, like solar energy, is intermittent. Therefore, it is important when considering the wide scale use of renewable energy, to find a way of storing that energy. Then it can be transported from one region to another and deployed in a way that overcomes the intermittent supply of renewable energy.
All supplies of energy, regardless of their source, are potentially intermittent. Oil is extracted in parts of the world that are politically unstable and gas supplies are vulnerable to technical and political disruptions that affect distribution. At the same time, public reaction to a single incident at a nuclear power station can result in several months of disruption while the plant remains off line. But conventional energy providers have access to long supply chains that provide a buffer against irregular supply. A retailer using wind turbines to provide power must place the turbine close to its store and when the wind stops blowing the power supply is cut. Meanwhile the same store can receive an uninterrupted supply of electricity generated in oil-powered power stations. Even if supplies of oil are disrupted there is usually enough fuel in the supply chain to power the store until the flow of oil can be restored.
However, in its infancy, even the oil industry suffered from intermittent supplies. Barrel suppliers and storage tank manufacturers, who solved the storage problems were well rewarded. One of the ways companies such as Standard Oil manoeuvred themselves into such strategic positions within the oil industry was by lengthening supply chains. Companies who can lengthen the alternative energy supply chain will be equally well placed as the market for new sources of energy develops.
This report examines the market for stored renewable energy and the companies that are already active in this area. It looks at a range of technologies that can be used to convert renewable energy for transportation or deferred use.
Also considered is the business case for energy storage and distribution within ‘Urban Heat Islands’. Cities provide an interesting example of the potential of stored renewable energy. The solar energy and heat created by activities within cities is temporarily locked into physical infrastructure such as roads and buildings. This report examines a scenario that could provide companies, that are able to unlock this energy, with robust business models and revenue streams.