Navigant Research has released a new study analysing the global market for distributed energy storage systems between 2019 and 2028.
The annual added power capacity from distributed energy storage systems is expected to grow by approximately 20 times, from 1,073.3MW in 2019 to 19,878.1MW by 2028.
Key factors driving the market include:
- Cost declines
- Government incentives
- Increased solar PV integration
- An increase in utility involvement in the market.
Other key study findings include
- A significant increase in the storage industrhy seen over the past 5 years.
- Advancements in digital technologies such as artificial intelligence, blockchain and predictive analytics, are facilitating the emergence of DESSs as a key enabling technology for aggregated distributed energy resources solutions.
Ricardo Rodriguez, a research analyst with Navigant Research, said: “DESSs are inherently flexible, can be deployed rapidly, and have the potential to generate multiple value streams.
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“They can also provide multiple grid and customer benefits, like reducing congestion on the network or limiting the need for peak capacity resources.”
On the other hand, long-standing uncertainties concerning feasible uses and cost-effectiveness continue to hinder the market growth.
The technologies are expected to remain concentrated in select markets in the near term before spreading to new areas as system costs decrease and business models continue to be refined.