Revenue generation in utility scale battery energy storage industry is expected reach $3.6 billion per annum by 2025, from $231.9 million in 2016.
In a press statement announcing the release of its latest report, Navigant Research attributes market growth to an increase in the deployment of distributed energy resources to ensure reliability of grid networks.
Utilities are expected to continue implementing energy storage solutions to ensure they meet power demand during peak periods, but having generated the majority of their energy from clean energy sources during off-peak periods.
[quote] Navigant states that energy storage systems will help global utilities meet carbon emission reduction targets, relying on low carbon energy generation.
Government policies are also expected to drive the growth in adoption of advanced batteries for utility-scale energy storage applications.
William Tokash, senior research analyst at Navigant, said: “Improvements in advanced battery energy storage technologies, developing regional regulatory and market drivers, and emerging new business models are poised to make utility-scale energy storage a growing and viable part of the electricity grid.” [Con Edison reduces peak demand with battery storage]
Battery energy storage adoption
The release of the report follows an announcement by US electric utility company Sterling Municipal Light Department (SLMD) that it selected NEC Energy Solutions for the development of an energy storage system.
NEC Energy Solutions will construct 2MW/3.9MWh energy storage plant for Sterling town’s utility firm by December, 2016.
The project is expected to help SLMD improve the reliability of its grid network by reducing power outages caused by weather conditions.
The energy storage system will also help Sterling town increase its adoption of clean energy resources to reduce carbon emissions and provide consumers with cheap and reliable electricity.
SLMD provides electricity to some 3,700 residential, commercial, municipal and industrial customers in Sterling.
The implementation of the project is being funded by the Massachusetts Department of Energy Resources (DOER) and the US Department of Energy.
The DOER provided SLMD with $1.46 million for deployment of the project. Once completed, the SLMD energy storage plant is expected to be the largest energy storage system in New England, Massachusetts.