Cleantech Market Intelligence
Tesla Announcement Highlights Importance of Energy Storage Partnerships
Tesla Motor’s April announcement of stationary energy storage solutions brought an unprecedented level of attention to the burgeoning energy storage industry, benefiting all stakeholders. Competing products providing storage for residential, commercial, and industrial customers are already on the market, however.
These systems are designed for a variety of distributed energy storage applications—currently some of the fastest-growing areas of the global storage market. Navigant Research estimates that the global installed capacity of residential and commercial energy storage systems will grow from around 246 MW in 2015 to over 10,484 MW by 2024, with lithium ion (Li-ion) expected to account for 58% of total capacity.
The new product launches from Tesla highlight the growing importance of partnerships within the industry. While Tesla provides a sleek battery module, the company does not offer bidirectional inverters or installation services. The energy storage ecosystem is comprised primarily of companies like Tesla, with specialized offerings that must seek out partners to offer the complete solutions that customers demand. (Navigant Research’s recent report Energy Storage Enabling Technologies analyzes the value chain within this industry.)
Tesla has established partnerships to complete their offering and provide storage systems for a range of end users through channel partners. The systems will be available through solar PV provider SolarCity, demand response aggregator EnerNOC, and engineering/construction specialist Black & Veatch, among others. These partnerships each target different market segments, each requiring varying business models and product specifications. With Tesla’s plans, competition has intensified in the distributed storage market, as several leading companies have recently announced new partnerships to offer similar integrated solutions.
Competition Heating Up
Partnerships are essential for most storage market players: battery manufacturers need supply agreements for their products and system integrators need component suppliers, while software and power electronics providers look for integrators and developers to get their products into complete solutions.
Electrical solutions provider Gexpro recently announced an agreement with battery manufacturer LG Chem, the power conversion provider for Ideal Power, and energy management software vendor Geli to offer a fully integrated battery energy storage systems (BESS) for commercial and industrial (C&I) customers. This follows similar announcements from LG Chem to provide Li-ion batteries in the Northeast United States through an agreement with energy services company OneEnergy for C&I customers and Eguana for residential customers.
Other notable relationships recently announced include solar PV provider SunPower partnering with storage system vendors Stem and Sunverge to offer BESSs for their C&I solar customers. Additionally, leading Li-ion battery vendor Samsung SDI recently announced supply agreements with GreenCharge Networks, as well as with microgrid developer ABB.
Aside from battery vendors, other companies in the market are establishing similar relationships to solidify their offerings. Notably, microinverter manufacturer Enphase, which is developing energy storage solutions utilizing its products, recently announced an agreement with battery vendor ELIIY.
Coming into Focus
While supply agreements and distribution partnerships have been developing in the stationary storage market for some time, more recent announcements targeting C&I customers are increasingly important. In this segment, it is crucial for companies to offer integrated solutions that are easy to operate and quick to install. As a result, leading companies are joining forces to combine their specialties into the most effective offering. We explore these relationships within the energy storage ecosystem through various reports, including the recently published Navigant Research Leaderboard Report: Energy Storage System Integrators and an upcoming Leaderboard Report on Li-ion grid storage.