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.
A new report from Navigant Research, 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 growth of energy storage is expected to continue following the increasing development of renewable generation. Many countries have recently seen significant growth in renewable generation, but energy storage has yet to take hold. This is expected to change in the coming years as energy storage system (ESS) prices continue to decline and project developers gain experience efficiently building, integrating, and monetizing ESSs alongside renewable plants.
The report, “Market Data: Energy Storage for the Grid and Ancillary Services” states that perhaps the most significant trend demonstrating the growing maturity and potential of this industry has been the availability of financing driven by greater investor confidence and the involvement of larger corporations. As previously built projects continue to bring stable returns and significant value for grid operators, new companies are entering the market to provide capital, project development expertise, and access to new markets
“Despite slower than expected growth in 2017, the grid-scale storage market is rapidly expanding,” says Alex Eller, senior research analyst at Navigant Research. “Key trends that are facilitating growth include a major reduction in the time to build new projects and the availability of financing driven by greater investor confidence and the involvement of larger corporations through recent mergers, acquisitions, and new market entrants.”
In October, Navigant released a similar report on the global market for energy storage for microgrids (ESMG), stating that Interest in energy storage-enabled microgrids is growing alongside an increase in solar PV and wind deployments. Although not required for microgrids to operate, energy storage systems (ESSs) have emerged as an increasingly valuable component of distributed energy networks because of their ability to effectively integrate renewable generation.
The 3rd Annual Environmental Leader & Energy Manager Conference takes place May 15 – 17, 2018 in Denver. Learn more here.