- The projection in the market valuation results from the surge in investment and demand for integrating renewable and sustainable energy solutions.
- CAES technology can compress and store excess energy generated during off-peak hours and readily convert it to electricity during peak demand periods.
Compressed Air Energy Storage (CAES) market valuation is projected to exceed USD3.5 billion by 2032, a research study by global market insights inc. has revealed. According to the research, the surge in integrating renewable energy sources and sustainable energy solutions is responsible for this projection. Globally, growing investment in renewable energy projects is generating strong demand for CAES solutions (a cutting-edge technology that stores excess energy in compressed air form), making it the leading solution in the energy storage landscape.
CAES is finding significant application in on-site power systems, offering a reliable and sustainable energy storage solution for industrial facilities, commercial buildings, and off-grid areas. It gives businesses greater control over their energy consumption and contributes to overall energy cost savings while promoting a greener and more sustainable future. With CAES, excess energy generated during off-peak hours can be compressed and stored, ready to be converted back to electricity during peak demand periods. This ensures a constant and uninterrupted power supply, reduces reliance on the grid, and enables more efficient energy management.
As part of the International Renewable Energy Agency’s (IRENA) target to achieve 1 TW (terawatt) annual new renewable capacity in 2030, IRENA signed an MoU with Global Renewables Alliance in June 2023 to achieve a fast, sustainable, and economical energy transition. The collaboration would focus on facilitating worldwide delivery of renewable energy and enable policymakers to eliminate barriers to the development of renewables. CAES provides a reliable and flexible solution for grid stabilization and peak demand management with its ability to store large amounts of energy for long durations and provide rapid response times.