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Innovations in business models and financing will play key roles in the expansion of energy storage-enabled microgrids market during the coming years.
A new report from Navigant Research examines the global market for energy storage for microgrids (ESMG), providing an analysis of trends and market dynamics, with forecasts for capacity and revenue that extend through 2026.
Interest in energy storage-enabled microgrids is growing alongside an increase in solar PV and wind deployments. Although not required for microgrids to operate, energy storage systems (ESSs) have emerged as an increasingly valuable component of distributed energy networks because of their ability to effectively integrate renewable generation. According to a new report from @NavigantRSRCH, throughout the next 10 years, a cumulative 14,850.7 MW of new ESMG capacity is expected to be installed, generating approximately $22.3 billion in revenue.
“There are several key drivers resulting in the growth of energy storage-enabled microgrids globally, including the desire to improve the resilience of power supply both for individual customers and the entire grid, the need to expand reliable electricity service to new areas, rising electricity prices, and innovations in business models and financing,” says Alex Eller, research analyst with Navigant Research. “Innovations in business models and financing will likely play a key role in the expansion of the ESMG market during the coming years.”
According to the report, the most successful companies in this industry will be those that can unlock the potential of new business models to reduce the risk and upfront costs to customers. This is particularly true in Asia Pacific and North America, which are projected to be the largest regional markets for new ESMG capacity by far.