Curtailment payments to wind farm operators in the UK exceeded £274m in 2020 (up from £139m in 2019); just one symptom of the increasing costs of balancing electricity generation and demand as the percentage of renewables’ generation increases in the UK.
This picture is repeated across the world due to grid capacity constraints, which Cumulus helps to unlock. High-energy, long-duration storage offers arbitrage and asset deferral, as well as ancillary service value propositions. The commercial renewables market for storage is expected to grow with the following increases in installed renewables capacity:
The Global Wind Energy Council forecasts the cumulative GW of wind generation installed capacity to increase by just over two-thirds from 650GW at the end of 2019 to 1,005GW by the end of 2024.
Cumulative solar PV installations globally are forecast by Solar Power Europe to more than double from 634GW at end 2019 to 1,448GW by the end of 2024.
Infrastructure we see as a market for the future rather than now, due to the need for clear energy storage policies and business models that recognise the value high energy long-duration storage brings to the grid. Specific markets include electric vehicle recharging infrastructure, micro-grids and grid-support.
Energy Intensive Industries
There is a global opportunity to improve energy management and drive down energy costs for electricity intensive industries across the world. Specific markets include diesel-engine generator set replacement with solar PV plus storage for mining and remote regions.
Cumulus is targeting clearly defined projects in these markets, with a number of partners and potential licencees around the world.