A recent report released by IHS Markit, a London-based information analysis company, ranks the biggest players in the US commercial and industrial (C&I) energy storage suppliers based on third quarter data.
Green Charge, Stem and AMS lead the group, while Demand Energy, SimpliPhi and Virility Energy follow close behind. According to IHS Markit, all of these players work with a lot of partners and different channels to get to market. But the leaders we’ve identified are the ones who operate, optimise and deploy storage systems on different levels. Within the C&I space there are a lot of different players along different parts of the value chain. It becomes a difficult exercise to map that because some players go all the way down to actual battery module assembly and then integration, installation, optimisation and the software side of things down to operations and maintenance (O&M), whereas others just focus on very specific aspects of that value chain.
The information firm says the three leading companies all have one thing in common: they provide storage-as-a-service. “Providing energy storage – and other energy resources – as a service, brings the supplier-customer relationship into something more like a subscription to an app that saves the C&I customer energy and money. It’s a perfect fit for the age of Uber and Airbnb, where you don’t need to own a fleet of cars or expensive hotel real estate to provide that service. Or the age of Netflix and Amazon, where tying a growing customer base in on a reasonably priced contract helps you continue to build scale and confidence to invest back in your own operations. In the case of energy storage, it’s about providing a full-service proposition to the customer that the customer doesn’t even have to understand. You save me energy costs and I pay you x and the energy cost goes higher than x, so I win,” the report states.
Growth of Energy Storage
According to the information firm, over five years, C&I energy storage in the US is forecast to grow from 60MW of annual installations in 2017 to 400MW in 2022. And according to a recent report from GTM research, the first quarter of 2017 set the record for most megawatt-hours deployed in any given quarter in the US, with a total of 234 MWh of storage deployments. The bulk of these deployments went toward the fulfillment of California Public Utilities Commission’s expedited procurement to meet capacity needs stemming from the Aliso Canyon facility’s shutdown. Taken as a whole, the remaining three quarters of 2017 collectively deployed less storage in the US was installed in the first quarter, but 2017 was still a big year for US energy storage.
This comes on the heels of a report from Navigant Research, which says the energy storage for the grid and ancillary services (ESGAS) market has experienced unprecedented growth in certain countries, thanks to the availability of financing, favorable regulations and innovative business models. In fact, in 2018, the global ESGAS industry is projected to deploy 1,220.7 MW of new capacity, growing to 29,300.5 MW by 2027.
The 3rd Annual Environmental Leader & Energy Manager Conference takes place May 15 – 17, 2018 in Denver. Learn more here.