A report by Navigant research highlights significant growth in the future global market for energy storage for renewable integration (ESRI), within both utility-scale and behind-the-meter (BTM) applications.
According to the report, released in Q4 of 2017, renewable, utility-scale power plants will be a major source of market growth however, it is the BTM installations that will take the lead in terms of revenue generation. BTM includes commercial and industrial, as well as residential installations and is expected to generate $13 billion by 2026, surpassing the forecasted $9.6 billion expected from utility-scale plants.
A number of factors have allowed this growth trend to materialise:
- There has been a consistent increase in demand for solar and wind power, associated with a decrease in project costs and improved technologies
- Solar PV with storage extends the use of solar, allows for load shifting and improves resilience of off grid generation
- Energy storage systems are seeing a drop in price and increased popularity in the market. These systems allow for a more seamless integration of variable forms of generation onto the grid and provide customers with more cost effective options for on-site energy storage
- Peak shaving and incentive programs specific to energy storage are driving the BTM market
- Solar PV has reached grid parity in some areas, decreasing the need for policy incentives to justify deployment
- Solar PV with storage is aligned with global sustainability initiatives to reduce carbon emissions
The International Energy Association forecasts that annual global renewable installations will be 80 percent higher than coal, oil and natural gas combined between 2017 and 2040. This perspective is supported in Navigant’s research report, which suggests wind and solar installations will surpass 1,500 gigawatts cumulatively between 2017 and 2026.