What Does the Future of Energy Look Like?

• Energy storage systems (ESS), refer to a suite of existing and emerging technologies that convert the electrical energy from power systems and store energy in order to supply electrical energy at a later time when needed.
• These technology will bring support for the flexibility, reliability, and resilience of the power system, increasingly necessary as Variable Renewable Energy (VRE) penetration in the grid increases.

The importance of energy storage in enabling the energy transition over the coming years is fundamental and the close interlinkages between energy security and the global economic and political landscape cannot be understated given the current context. How different technologies are likely to evolve, the role and configuration of the energy mix in the coming decades, and how the expected growth in energy demand and the increased penetration of VRE will influence the resiliency and adaptation of the grid, are major questions surrounding the future energy storage.

The overarching objective of this exercise is to increase awareness externally and within Ferrovial, around energy storage systems to embrace this changing context.

To find answers to these questions, we’ve worked in an internal process of discussion and analysis to envision these four plausible scenarios in 2035 and the relevant opportunities that are available for download here.

What are Energy Storage Systems?

Energy storage systems (ESS), refer to a suite of existing and emerging technologies that convert the electrical energy from power systems and store energy in order to supply electrical energy at a later time when needed. Specifically, storage occurs during times when the power systems production exceeds consumption and is utilized at times when consumption exceeds production. ESS presents solutions to some of the most critical challenges facing the energy transition over the coming decades.

Energy storage is inextricably interlinked with VRE as it mainly helps to mitigate intermittency and seasonality associated with solar and wind-based generation sources, to shift electricity from times of high supply to times of high demand and to provide grid flexibility and strength. The penetration of renewable power generation is expected to grow exponentially over the coming years due to their rapidly declining costs and as countries strive to comply with their announced decarbonization commitments, placing a great emphasis on the role of energy storage.

Energy Storage Value System

The energy storage value system is complex and emergent in nature, involving a number of diff erent stakeholders, including established incumbents from the power sector as well as new start-ups. As different technologies and regulations mature, this landscape might experience shifts over the coming years, with the entry of new players or the defi nition of new roles.