The report, Distributed Energy Storage Systems for Energy Cost Management and Grid Management: Global Market Analysis and Forecasts, covers the community energy storage, and residential and commercial storage segments, as well as the following technologies: lithium ion (Li-ion), flow batteries, advanced lead-acid and other next-generation chemistries such as sodium metal halide, ultracapacitors and aqueous hybrid ion.
The drivers for community energy storage include improved reliability in case of outages, load leveling/peak shifting and improved power quality.
For commercial customers, the most important market condition is the rate structure, with demand charges and time-of-use pricing being the most favorable.
The primary market drivers for residential energy storage are reliability and energy cost management, with the goal being to buy the minimum amount of electricity from the grid. Community energy storage is expected to be the niche application within the DESS market, largely due to the high cost of community energy storage systems (ESSs).
Although commercial storage systems will generally be much larger than residential or community systems, this market requires high demand charges or active demand response (DR) markets to secure a return on investment, Navigant says. This is expected to limit the market for commercial storage significantly in the next three years as emerging commercial storage markets begin to develop more meaningful demand charge structures or DR programs.
Li-ion is the technology of choice across all applications, but especially in residential and commercial energy storage.
Key players in the DESS space include technology vendors, systems integrators, inverter manufacturers, software and controls firms, and installers. Vendors that have cultivated strong distribution networks and offer advanced software and controls, alternative financing structures or integrated PV in addition to energy storage are poised for success.