Up to 36,938.5MW of new energy storage capacity is expected to be installed for microgrids projects over the next ten years, according to Guidehouse Insights.
The new energy storage installations will generate approximately $40.1 billion in revenue.
Factors driving the market include an increase in interest in microgrids with enabled storage systems, innovation in business models and financing.
Leading market players are unlocking the potential of these new business and financing models to reduce the risk and upfront costs to customers.
A continued increase in the need to integrate variable renewables in microgrid projects is also driving demand for storage systems.
Although not required for microgrids to operate, energy storage systems have emerged as a popular and valuable component of these distributed energy networks.
Ricardo F. Rodriguez, a research analyst with Guidehouse Insights, said: “The markets for both energy storage and microgrids have developed significantly in the last few years thanks to major price decreases and accelerated adoption.
“Looking ahead, the global market for ESMG is expected to grow rapidly, with total annual capacity additions increasing from 650.4 MW in 2020 to 8,633.4 MW in 2029.”
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