October 18, 2013
Global markets boasted 51,000 megawatts of wind and solar photovoltaic power generation capacity installed in 2012 alone, and while some variable generation markets may slow or stall, there is no doubt that wind and solar markets will continue to expand over the next 10 years. That growth will require grid operators to adapt to unprecedented levels of variable generation on their systems—in part through the increased use of energy storage systems (ESSs). Click to tweet: According to a recent report from Navigant Research, the worldwide market for ESSs for wind and solar power integration will grow from less than $150 million annually in 2013 to $10.3 billion by 2023.
“Although market and industry issues have restrained growth to date, energy storage for wind and solar offers a compelling business case,” says Anissa Dehamna, senior research analyst with Navigant Research. “This is especially true at the residential level, where electricity rates are typically more expensive on a per kilowatt-hour basis than in commercial and industrial settings.”
ESSs are one of several technologies that can be used to integrate variable generation. Demand response (DR) and natural gas are two primary alternatives, and both offer their own advantages: DR requires much less capital investment than ESSs, according to the report, and natural gas is well understood and presents relatively little technology risk. However, ESSs have the advantage of more technical flexibility than either DR or natural gas.
The report, “Energy Storage for Wind and Solar Integration”, analyzes the global market opportunity for energy storage for wind and solar integration across three key application segments: wind, distributed solar PV, and non-distributed solar PV. The report provides a comprehensive assessment of the demand drivers, policy factors, and technology issues associated with the market for energy storage in these growing applications. Key industry players are profiled and worldwide revenue and capacity forecasts, segmented by application, technology and region, extend through 2023. A business case analysis including global estimates of curtailed renewable energy and the market value of this energy is also included. An Executive Summary of the report is available for free download on the Navigant Research website.
Contact: Richard Martin
* The information contained in this press release concerning the report, “Energy Storage for Wind and Solar Integration,” is a summary and reflects Navigant Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.