HOUSTON—General Electric Co., which has struggled in the growing business of large-scale electricity storage, is trying again with a new battery platform as it tries to catch up to rivals such asTesla Inc. TSLA 1.25% and Siemens AG .
The giant platform called GE Reservoir is expected to store electricity generated by wind turbines and solar panels for later use. The battery-storage market is expected to grow in coming years as some utilities look for less-expensive alternatives to the power plants that fire up during peak hours to meet power demand. It also is expected to be used to add jolts of power when needed to stabilize voltage and frequency on the electric grid.
While the market is currently tiny, its growth potential has already attracted a parade of big-name competitors including Tesla, which deployed an enormous battery system in Australia last year. Siemens, one of GE’s biggest rivals in the power business, paired with AES Corp. last year to launch Fluence Energy LLC, a joint venture that is building what is expected to be the world’s largest lithium-ion battery in California. IHS Markit predicts the global market for batteries in the power sector will grow 14% annually through 2025.
This isn’t GE’s first attempt to turn rechargeable batteries into a big business. The company tried making batteries using sodium-based technologies several years ago but abandoned the effort when it couldn’t compete with the dominant technology, lithium-ion batteries. GE then turned its attention to selling battery systems via a subsidiary called Current. It recently revamped that business, creating a stand-alone battery unit within the GE Power division.
“Energy storage is like a Swiss Army knife—there are so many things you can do with it,” said Eric Gebhardt, vice president and strategic technology officer at GE Power, who is scheduled to talk about batteries at the CERAWeek energy conference here on Thursday.
The battery being unveiled—a 1.2-megawatt unit using lithium-ion technology—is the first in a series GE plans to launch under the Reservoir platform. GE said it has already lined up a customer, which it declined to name, and expects to start shipping Reservoirs by early 2019.
Success would be a needed boost for the struggling conglomerate, which is in the middle of restructuring and said last week it would overhaul its board. GE is seeking access to a market that Navigant Research predicts will generate tens of billions of dollars in revenue in the next decade or so.
One of GE’s biggest challenges will be differentiating its battery products from those offered by competitors such as Fluence. Mr. Gebhardt said GE will seek to take advantage of its vast footprint in electricity to build its battery business.
Recent Comments