The Future of DERs

A new report from Navigant Research analyzes the market for distributed energy storage systems with uninterruptible power supply (UPS) capabilities for non-mission critical operations (UPSX), providing an overview of market issues and revenue forecasts through 2026.

Historically, the high costs of UPS systems have made commercial and industrial (C&I) facility managers with non-mission critical operations hesitant to invest in the resiliency technology. Today, a new UPS application, UPSX, is emerging that leverages behind-the-meter (BTM) C&I distributed energy storage system (DESS) technology to provide grid ancillary services to utilities and competitive markets, as well as electrical demand charge reduction and resiliency to C&I facility managers.

“Many C&I facilities with non-mission critical operations view electrical service outages as an unmanageable cost of doing business due to the high costs of traditional UPS service systems,” says William Tokash, senior research analyst with Navigant Research. “Navigant Research anticipates the emergence of a new UPS service option for this sector will leverage DESS and financing innovation to address this unmet need.”

According to the report, stakeholders now focused on the DESS applications market will begin to add UPS system capabilities to the design and operation of their DESSs. In turn, these UPSX capabilities will begin to address the unmet electrical outage mitigation needs of C&I customers in non-mission critical sectors, while offering an improved business case, increased grid reliability, and financing innovation.

The report, “Advanced Energy Storage for UPS Applications,” examines the drivers, barriers, and regional trends affecting the deployment of UPSX. The study provides an analysis of the market issues, including drivers, barriers, and geographic trends, associated with UPSX solutions. Global market forecasts for UPSX revenue, segmented by region, building type, and technology, extend through 2026. The report also examines the key technologies related to UPS systems, as well as the competitive landscape.

In late 2017, Navigant released a report projecting the global market for distributed energy resources technologies to reach nearly 530 GW through 2026. Technology advances, business model innovation, changing regulations, and sustainability and resilience concerns have brought DER into the core of the future deployment of energy infrastructure. Encompassing a broad set of solutions that include systems and technologies designed to operate closer to customers on the electricity grid, the global proliferation of DER has begun to have a significant, and at times controversial, influence on the electricity industry.

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