Frost: Environmental Factors, Low Costs Propel Euro Flywheel UPS Market
October 13, 2008 // Published as a news service by IHS
Amid growing concerns over the preservation of the environment, the quest for energy efficient and greener technologies is intensifying in Europe, according to Frost & Sullivan, especially after the signing of the Kyoto Protocol.
Green initiatives have encouraged the gravitation toward environmentally friendly technologies, such as flywheel uninterruptible power supply (UPS) systems.
The European Commission (EC) energy efficiency action plan also helped drive the uptake of flywheel UPS systems.
Recent analysis from Frost & Sullivan of the European flywheel UPS markets found earned revenues exceeding €25.4 million in 2007, with estimates to reach €58 million in 2014.
"Although the technology has been in existence for a long time, it has seen widespread acceptance and increased uptake only over the past three or four years," said Frost & Sullivan program manager Malavika Tohani.
"Flywheel UPS systems use kinetic energy, eliminating harmful emissions and disposal issues and reducing the impact on the environment."
Data centers represent the largest end-user segment for flywheel UPS systems, followed by the industrial segment. Analysts said other sectors, such as airports, shopping malls, hospitals and commercial applications, are expected to step up the pace of adoption of flywheel technology.
"The total cost of ownership (TCO) for a flywheel UPS is less than that of the battery-based UPS, primarily because of the lower operational costs," said Tohani. "Moreover, this technology is energy-efficient and space-saving since it does not require huge storage space for batteries or cooling systems that are a part of conventional UPS systems."
The benefits of this technology have remained unnoticed and underpublicized, and it is this inadequate exposure that is proving to be a handicap. Analysts said data center customers, for the most part, are unaware of the economic viability of this technology, but understand its value from the standpoint of environmental conservation.
Power outages and load fluctuations can prove costly in mission-critical environments and the importance of ride-through capability is increasing. While the short backup time of the flywheel UPS prevents widespread use, analysts said this technology offers undeniable benefits including long life, low maintenance and TCO, low storage space requirements and being eco-friendly.
Analysts said dramatically raising awareness levels will support rapid market growth. Manufacturers must actively participate in conferences, trade shows and seminars to enable better exposure for flywheel technology. Besides effective interaction with contractors, consultants and training agents are necessary to engender more productive business outcomes.
Nonetheless, ongoing efforts to reduce carbon dioxide (CO2) emissions and prevent climate change have triggered interest in alternative energy storage technologies. Analysts said as awareness spreads and manufacturers ramp up R&D efforts, flywheel systems are bound to gain ground in the UPS space.
Source: Frost & Sullivan.