Lithium-ion batteries are emerging as the breakout technology in the utility-scale energy storage sector, according to new research from Navigant Research.
Through analysis of the global market for bulk and ancillary service applications, Navigant estimates that worldwide revenue from energy storage will grow from US$675 million annually in 2014 to US$15.6 billion in 2024.
Developing energy storage that is viable for grid applications has been a goal of vendors and grid operators for a number of years and a number of factors have begun to converge to bring that goal close to fruition, states the new study.
Anissa Dehamna, senior research analyst with Navigant Research, said: “The grid-scale energy storage market continues to develop in a piecemeal fashion, but there are signals that it is poised for significant expansion in the coming years.”
Challenges to energy storage
Still, the market challenges are significant for energy storage to be deployed widely on the grid.
The industry needs more systems integrators and financing models to succeed, according to the report, as there is more value in providing solutions at the end of the supply chain (such as systems integration, including power conversion systems and inverters) than in the core technologies.
As a result, technology vendors have been moving down the supply chain to filling in this void, the report concludes.
Specifically, the markets analysed in this report are grid asset optimization, wind integration, solar integration, arbitrage, T&D upgrade deferral, frequency regulation, voltage support, spinning reserve, electric supply reserve capacity, and load following.