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A new report from Navigant Research examines the global market for energy storage for renewables integration (ESRI), with a focus on six utility-scale, commercial and industrial, and residential applications.
As costs for renewable energy projects drop and policies and resilience demands increase, capacity for wind and solar PV continues to rise across all regions and market segments. This uptick in large-scale additions of variable forms of generation presents challenges to the electrical grid, but energy storage systems (ESSs) are helping to mitigate concerns and integrate renewable energy resources without affecting grid reliability. According to a new report from @NavigantRSRCH, total annual revenue for ESRI is expected to exceed $23 billion by 2026.
“Thanks to the continued drop in prices in energy storage, solar PV, and wind, ESRI is forecast to see strong growth across both utility-scale and behind-the-meter (BTM) applications,” says Adam Wilson, research analyst with Navigant Research. “Interestingly, while utility-scale renewable prices are experiencing bigger declines, formidable drivers in the BTM market, such as peak shaving and incentive programs specific to energy storage, are expected to push the segment to account for roughly two-thirds of forecast global ESRI capacity through 2026.”
According to the report, solar PV has reached grid parity in several locations around the globe and no longer requires policy incentives in order to justify deployment in many markets. ESSs have also experienced steady price decreases over the last 5 years and are establishing a growing presence in the grid-tied and remote system markets. This has provided customers in both utility-scale and BTM markets greater flexibility in installing economically viable solar PV plus energy storage systems.