Market Trends of Vanadium Redox Battery Industry
This section covers the major market trends shaping the Vanadium Redox Battery Market according to our research experts:
Utility Sector to Witness Significant Growth
- With the growing carbon emissions around the world, the deployment of both solar panels and wind turbines are increasing over the years. Both technologies require energy storage facilities during peak hours. A vanadium redox battery is an ideal solution to store the surplus energy generated by both technologies.
- During 2021, solar and wind energy have an installed capacity of around 849.4 gigawatts (GW) and 824.8 GW, respectively. With government initiatives, these capacities are likely to witness significant growth during the forecast period.
- On account of its technical advantages over lithium and lead-acid batteries, it is likely to find more use in the installation of solar panels and wind turbines.
- Vanadium redox battery is suitable for grid and off-grid connections. Unlike a lithium-ion battery, it can be discharged completely, and the electrolyte can be reused and doesn't need to be disposed of. Moreover, the electrolyte used is aqueous and inherently safe, and non-flammable.
- According to the International Energy Agency (IEA), the solar photovoltaic and wind energy sectors are likely to increase their capacity to more than 970GW and 830GW by 2025, which is expected to expand the vanadium redox battery market during the forecast period.
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Asia-Pacific Likely to Dominate the Market
- The Asia-Pacific is expected to dominate the vanadium redox battery market as the region has several operational flow battery installations with large power ratings.
- Countries such as China, India, Japan, and Australia are striving to boost their large-scale energy storage capacity through battery technologies that could, in turn, enhance electric stability.
- As of 2022, China holds the highest capacity of flow batteries installed compared to other countries in the Asia-Pacific region.
- In September 2022, The Energy Storage from the Flow Battery in northeast China's Dalian, the peak-shaving power station, has recently been wired into the grid. The vanadium flow battery will eventually increase its present 100 MW/400 MWh capacity to 200 MW/800 MWh. The Chinese Academy of Sciences estimates that it can provide enough electricity to cover the daily needs of 200,000 inhabitants.
- This project represents a key step in utilizing China's rich vanadium resources for renewable energy development that will transform the energy industry and help alleviate environmental problems.
- Moreover, with existing and upcoming solar and wind projects in the region, many companies are keen on deploying and expanding their business in Asia-Pacific, which is expected to develop the market in the future.
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