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Figure 3: Lithium-ion battery chemistry market share forecast, 2015 – 2030 Source: (Wood Mackenzie 2020) 2.1.1 Current Applications In addition to widespread electric mobility applications and consumer electronics, lithium-ion battery storage is increasingly used for stationary energy storage applications, both in utility-scale and behind- the-meter applications. Lithium-ion’s quick response time, long cycle life, and limited duration lend itself well to shorter-term applications that may require frequent and deep cycling.6 Currently, lithium-ion is used in frequency response and other essential grid reliability services that help system operators maintain balance between load and demand at short timescales (up to a few hours) (Bowen et al. 2019). Lithium- ion batteries have also seen deployment for providing peaking capacity, charging during times of energy surplus, and discharging during times of higher demand to help utilities meet peak demand. Due to its limited duration, lithium-ion’s contribution to system peak demand strongly depends on the shape of the demand curve (Denholm and Margolis 2018). Similarly, lithium-ion can also be used to reduce grid congestion and defer transmission and distribution system upgrades by storing energy during times of excess generation and meeting load locally during times of high demand. 2.1.2 Emerging Applications and R&D Efforts Future improvements in lithium-ion batteries are primarily focused on increasing energy density, increasing the power output of lithium-ion cells, making the batteries safer to operate, reducing overall costs, and reducing reliance on scarce minerals. Two novel configurations currently being explored are 6 “Deep” and “shallow” cycling are used to qualitatively refer to the depth of discharge an energy storage system experiences during operation. The depth of discharge refers to the share of the storage system’s capacity that has been discharged and is inversely related to its state of charge. Although there is no set definition, deep cycling may refer to operations when the storage system discharges the majority of its stored energy (such as while providing prolonged peaking capacity) whereas shallow cycling refers to operations when the storage system alternates between charging and discharging such that its state of charge remains relatively high (such as providing frequency regulation). The depth of discharge can have significant effects on the lifetime of the storage system, and technologies vary in their sensitivity to the depth of discharge they experience. 10 This report is available at no cost from the National Renewable Energy Laboratory (NREL) at www.nrel.gov/publications.PDF Image | USAID GRID-SCALE ENERGY STORAGE TECHNOLOGIES PRIMER
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