These advances are helping to meet demand for distributed and flexible resources created by the spread of solar PV, electric vehicles, electric vehicle charging, and home energy networks.
One of the fastest-growing markets for energy storage globally, distributed energy storage is the focus of rapid innovation and intense competition. In particular, residential and commercial energy storage has far exceeded industry expectations for growth and market volume in 2014, and is poised for significant growth in the coming years. According to a new report from Navigant Research, worldwide revenue from DESSs is expected to grow from $452 million annually in 2014 to more than $16.5 billion in 2024.
“The development of advanced battery chemistries, including lithium ion (Li-ion), flow batteries, advanced lead-acid, and other next-generation chemistries, has enabled rapid advancement in the distributed storage market,” says Anissa Dehamna, senior research analyst with Navigant Research. “These advances are helping to meet demand for distributed and flexible resources created by the spread of solar PV, electric vehicles, electric vehicle charging, and home energy networks.”
Several challenges still remain for DESSs, according to the report, including the need for cost reductions, effective software and controls, and integration expertise across nearly every storage technology. Successful vendors are likely to be those that have cultivated strong distribution networks and offer one or more of the following in addition to energy storage: advanced software and controls, alternative financing structures, or integrated PV.
The report, “Community, Residential, and Commercial Energy Storage,” analyzes the global market for DESSs, with a focus on three distinct applications: community energy storage (specifically energy storage at the distributed transformer), residential energy storage (with and without solar PV), and commercial energy storage. The study provides an analysis of the market issues, opportunities, and challenges associated with distributed energy storage. Global market forecasts for power capacity, energy capacity, and revenue, broken out by application, technology, region, and ownership model, extend through 2024. The report also examines the key technologies related to DESSs, as well as the competitive landscape. An Executive Summary of the report is available for free download on the Navigant Research website.