February 19, 2021

Russia Needs a Tenfold Increase in Manufacturing of Energy Storage Systems / FIEP

The potential volume of the energy storage systems market in Russia by 2030 will amount to 10-15 GW. This means a more than tenfold increase over current level. Such information is stated in the review made by the New Energy Information and Analytical Center. RUSNANO Group’s Fund for Infrastructure and Educational Programs (FIEP) initiated the review. At the same time, own production of batteries for such systems is minimal. Even now imported products, primarily from China, dominate absolutely. This situation threatens domestic producers with a market loss of several billion dollars a year.

The only Russian manufacturer of domestic lithium-ion batteries for industrial use is the Liotech Novosibirsk company, owned by RUSNANO. Now it produces cells with a total volume of only 128 MWh per year. They are applicated in two main areas: electric transport (electric buses, trolleybuses with extended running, potentially — railway locomotives on batteries) and standby power supply systems (as emergency electricity sources; in isolated power systems using renewable power sources; and in the future — to meet peak demand for capacity at new hydrocarbon deposits).

The supply of industrial batteries based on Liotech cells is handled by Energy Storage Systems company from FIEP. In particular, its blocks operate at solar stations, covering with their capacities the arising generation deficits, including night ones.

The segment of home storage devices is “in hand” of ENRU company from the TechnoSpark Group and investment network of RUSNANO’s FIEP.

Energy storage systems (ESS) are one of the fastest growing segments of the global power industry. Over ten years, its volume has increased 48 times, and the average annual growth rate amounted to 47% (according to the expert and analytical report of the EnergyNet Infrastructure Center called Application of Energy Storage Systems in Russia: Opportunities and Barriers that was published in 2019). The rapid development is associated with the need to balance the volatility in production of the most widely used alternative energy sources, such as the sun and wind, as well as the falling cost of batteries due to the rapid development of production technologies. BloombergNEF predicts that the global installed capacity of energy storage systems will increase by another 122 times by 2040. As Lux Research company expects, the annual turnover of the energy storage market in 2035 will amount to $546 billion.

Vladimir Sidorovich, the author of the report, names the factors contributing to the growth of the ESS market. These are:

  • increase in the share of energy generation using alternative sources (the sun and wind) in the electric power industry and an increase in the demand for regulation of the energy systems’ power due to the fact above;
  • course towards heavy industry decarbonization;
  • transfer of transport, including that used for commercial and industrial purposes, to electric power;
  • large-scale plans for the production of carbon-free (green) hydrogen and synthetic fuels;
  • increased demand from electric power consumers to optimize costs.

The sector is dominated by lithium-ion batteries, as the least expensive technology showing a steady trend in reducing the manufacturing prime cost (eight times in a decade). According to the International Energy Agency (IEA), South Korea, China, the United States and Europe are the main markets for ESS deployments. However, recently, Saudi Arabia began construction of a Vanadium Redox Flow Batteries plant with a capacity of 3 GWh a year.

Gravitational solid-state storage technologies look promising. They are not demanding of natural conditions and have much less impact on the environment than pumped hydroelectric storage facilities that became widespread in the 1960s. The operation principle of solid-state storage power plants is based on lifting loads to a height of several hundred meters at night, when there is a surplus of electric power and it is cheap, and generating it when lowering loads under the influence of gravity during the day when electric power is expensive. In Russia, such technology is being developed by Energozapas company from the SYGMA. Novosibirsk Nanocenter, which is the part of the FIEP investment network.

Source: RUSNANO’s FIEP

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