Removing the diesel generator from a back-up power system would likely require far fewer lithium ion batteries than removing the gas engine from a car, and so the equivalent barrels of oil saved would be much higher for every kWh of lithium ion batteries. The economics would likely be much more compelling than the economics of electric vehicles as well.
It’s worth getting charged up about the potential of these new batteries from A123. If the technology works as well as the company says it does, they will enable significant savings of both money and fuel. But most of those savings won’t be found on the affordable electric vehicle superhighway.
The chances of real fuel savings aren’t as remote as the chances of a cheap electric car. Stop that thought, and start thinking about anti-idling technology and cell phone towers. The back up power opportunity may be in remote markets, but its chances aren’t remote at all.
Disclosure: Long MXWL, AXPW