There will be increased demand for next-generation batteries as more power plants are dependent on alternative power for production, says Jon Hickman, an Analyst at MDB Capital Group LLC. Alternative power plants are less constant in their production of energy than fossil fuel plants, and next-generation batteries can offset the variability in production.
“The more alternative energy production you put on your grid, like with solar power or wind or geothermal, the less reliable the power production becomes on a minute-by-minute basis,” Hickman says. “A cloud can come along and as the sun goes away, the power being generated by the solar power plant falls way off, the wind stops blowing and your wind power plant goes offline.”
Lithium-ion batteries can be used to store the energy produced through alternative production methods and release it while production is low. In addition, lithium-ion batteries charge and discharge quickly, generating up to 10 megawatts of power during a production low, thus making the cycle more constant.