Energy Storage for Renewables Integration

Market and Technology Issues, Business Cases, Key Industry Players,
and Market Forecasts for Energy Storage Systems for Renewable Energy Integration

The fastest-growing renewable energy markets continue to be solar PV and wind. These variable forms of generation present challenges to the electrical grid, which was designed using a centralized model with predictable power flows. As the percentage of wind and solar PV generation in a given area increases, this variable generation puts stress on the grid and can cause distortions in the energy market and instability on the grid. The first markets to experience this instability are islands and markets with high penetrations of distributed solar PV.

The growth of variable generation presents opportunities for energy storage systems (ESSs) situated either at the distribution grid or behind the meter. One of the primary drivers of the grid-tied ESS market has been the decreasing cost of advanced batteries. While system costs are still one of the biggest barriers to the industry’s growth, declining prices and a flood of new systems integrators are opening up new use cases and geographic markets. According to Navigant Research, global new installed energy storage systems for renewable energy integration (ESRI) power capacity is expected to grow from 196.2 MW in 2015 to 12.7 GW in 2025.

This Navigant Research report analyzes the global ESRI market, focusing on four primary applications: commercial ESRI, residential ESRI, utility-scale solar integration, and utility-scale wind integration. These four applications include a variety of different functions for an ESS to perform that can facilitate a seamless integration of variable renewable energy generation. The study provides an analysis of the market issues, including business cases, opportunities, and challenges, associated with ESRI. Global market forecasts for capacity and revenue, broken out by application, technology, and region, extend through 2025. The report also examines the key technologies related to ESRI, as well as the competitive landscape.

Key Questions Addressed:
  • What are the key characteristics of the business case for storage to support renewables integration at the residential, commercial, and utility-scale levels? 
  • What is the impact of curtailed wind on the business case for utility-scale wind integration?
  • How large is the energy storage for renewables integration (ESRI) market in terms of megawatts and revenue?
  • Who are the key players in the ESRI market?
  • How fast will the ESRI market grow and what are the key demand drivers?
Who needs this report?
  • Energy storage technology vendors and service providers
  • Wind energy equipment manufacturers, project developers, and plant operators
  • Solar PV equipment manufacturers, project developers, and plant operators
  • Power system suppliers and major electronics firms
  • Energy storage/battery component suppliers
  • Utilities and grid operators
  • Government agencies
  • Investor community

Table of Contents

1. Executive Summary

1.1  Overview

1.2  Market Developments

2. Market Issues   

2.1  Introduction

2.2  Growth in Variable Generation

2.2.1  Impact on Addressable Market for Energy Storage

2.3  Applications for ESSs

2.4  Regional Energy Storage Market Issues

2.4.1  North America

   2.4.1.1  California

   2.4.1.2  Hawaii

   2.4.1.3  New York

2.4.2  Europe

   2.4.2.1  Germany

   2.4.2.2  Rest of Europe

2.4.3  Asia Pacific

   2.4.3.1  Australia

   2.4.3.2  Japan

2.5  BTM Energy Storage

2.6  Business Models

2.6.1  ESS OEMs

2.6.2  Software and Systems Integration

2.6.3  Project Developers

2.6.4  Telecom Base Stations/Microgrids and Nanogrids

3. Business Case for Storage  

3.1  Overview

3.1.1  Isolated Grids (Islands)

3.2  Utility-Scale Storage for Renewables Integration

3.2.1  Wind

  3.2.1.1  Curtailment

            3.2.1.2  Ancillary Services

  3.2.1.3  Negative Pricing

  3.2.1.4  Feed-In Premiums

  3.2.1.5  FITs

  3.2.1.6  Capacity Requirements

3.2.2  Solar PV

   3.2.2.1  Grid Operator Concerns

   3.2.2.2  Ancillary Services

   3.2.2.3  Vertically Integrated Utilities

3.3  Distributed Storage for Renewables Integration in an Interconnected Grid

3.3.1  Community Energy Storage

3.3.2  Distributed Wind

3.3.3  BTM Solar PV

   3.3.3.1  C&I Energy Storage

   3.3.3.2  Residential Energy Storage

4. Technology Issues

4.1  ESSs Costs

4.1.1  Energy Storage Enabling Technologies Costs

4.2  Pumped Hydro Storage

4.3  CAES

4.4  Power-to-Gas

4.5  Thermal Storage

4.6  Flywheels

4.7  Li-Ion Batteries

4.8  Flow Batteries

4.9  Other Advanced Battery Chemistries

4.9.1  NaS Batteries

4.9.2  Advanced Lead-Acid

4.9.3  Zinc Hybrid Cathode

4.9.4  Salt Water Electrolyte

4.10  ESET

5. Key Industry Players

5.1  Energy Storage OEMs

5.1.1  Alevo

5.1.2  Beacon Power

5.1.3  EnSync Energy Systems

5.1.4  LightSail Energy

5.1.5  Tesla

5.2  Power Conversion and Inverters

5.2.1  Dynapower

5.2.2  Ideal Power

5.3  Systems Integration and Software/Controls

5.3.1  ABB

5.3.2  AES Energy Storage

5.3.3  Ampard

5.3.4  E3/DC

5.3.5  Green Charge Networks

5.3.6  Greensmith

5.3.7  Growing Energy Labs (Geli)

5.3.8  LG CNS

5.3.9  RES Americas

5.3.10   SolarCity

5.3.11   Sonnenbatterie

5.3.12   Spirae

5.3.13   SunEdison

5.3.14   Sunverge

5.3.15   Win Inertia

5.3.16   Younicos

6. Market Forecasts

6.1  Introduction

6.2  Methodology

6.2.1  ESRI Baseline Figures

6.2.2  ESRI Capital Expenditure

6.3  ESRI Forecasts by Region

6.4  ESRI Forecasts by Technology

6.5  ESRI Forecasts by Application

6.6  Conclusions and Recommendations

7. Company Directory
8. Acronym and Abbreviation List
9. Table of Contents
10. Table of Charts and Figures
11. Scope of Study, Sources and Methodology, Notes

List of Charts and Figures

  • New Installed ESRI Power Capacity by Application, World Markets: 2015-2025
  • New Installed Utility-Scale Wind, Utility-Scale Solar PV, and Distributed Solar PV Power Capacity by Region, World Markets: 2015-2025
  • Percentage of Wind Generation Curtailed by Independent System Operator, North America: 2007-2013
  • Average Installed ESS Cost by Technology, World Markets: 2015-2025
  • ESRI Market Segment Growth Profiles by Growth Type, World Markets: 2015-2025
  • New Installed ESRI Power Capacity by Region, World Markets: 2015-2025
  • New Installed ESRI Energy Capacity by Region, World Markets: 2015-2025
  • New Installed ESRI Revenue by Region, World Markets: 2015-2025
  • New Installed ESRI Power Capacity by Technology, World Markets: 2015-2025
  • New Installed ESRI Energy Capacity by Technology, World Markets: 2015-2025
  • New Installed ESRI Revenue by Technology, World Markets: 2015-2025
  • New Installed ESRI Energy Capacity by Application, World Markets: 2015-2025
  • New Installed ESRI Revenue by Application, World Markets: 2015-2025

List of Tables

  • Community Energy Storage System Design
  • Applications for Energy Storage Systems
  • Summary of Drivers and Customers for ESS for Utility-Scale Renewables Integration
  • ESRI Applications and Corresponding Baseline Figures
  • New Installed Variable Generation Power Capacity by Region, World Markets: 2015-2025
  • Summary of Solar PV+Storage Projects Funded through California’s SGIP: 3Q 2015
  • Average Retail Electricity Prices, Select Islands: 2011-2014
  • ESRI Applications, Technologies, and Typical Customers
  • Percentage of Wind Generation Curtailed by Independent System Operator, North America: 2007-2013
  • ESRI Market Segment Growth Profiles by Growth Type, World Markets: 2015-2025
  • ESRI Baseline Power Capacity by Region and Metric: 2015 and 2025
  • ESRI CAPEX Assumptions, Installed Cost by Technology and Application, World Markets: 2015-2025
  • New Installed ESRI Power Capacity by Region, World Markets: 2015-2025
  • New Installed ESRI Power Capacity by Technology, World Markets: 2015-2025
  • New Installed ESRI Power Capacity by Application, World Markets: 2015-2025
  • New Installed ESRI Energy Capacity by Region, World Markets: 2015-2025
  • New Installed ESRI Energy Capacity by Technology, World Markets: 2015-2025
  • New Installed ESRI Energy Capacity by Application, World Markets: 2015-2025
  • New Installed ESRI Revenue by Region, World Markets: 2015-2025
  • New Installed ESRI Revenue by Technology, World Markets: 2015-2025
  • New Installed ESRI Revenue by Application, World Markets: 2015-2025
  • New Installed ESRI Power Capacity by Technology and Application, North America: 2015-2025
  • New Installed ESRI Power Capacity by Technology and Application, Western Europe: 2015-2025
  • New Installed ESRI Power Capacity by Technology and Application, Eastern Europe: 2015-2025
  • New Installed ESRI Power Capacity by Technology and Application, Asia Pacific: 2015-2025
  • New Installed ESRI Power Capacity by Technology and Application, Latin America: 2015-2025
  • New Installed ESRI Power Capacity by Technology and Application, Middle East: 2015-2025
  • New Installed ESRI Power Capacity by Technology and Application, Africa: 2015-2025
  • New Installed ESRI Energy Capacity by Technology and Application, North America: 2015-2025
  • New Installed ESRI Energy Capacity by Technology and Application, Western Europe: 2015-2025
  • New Installed ESRI Energy Capacity by Technology and Application, Eastern Europe: 2015-2025
  • New Installed ESRI Energy Capacity by Technology and Application, Asia Pacific: 2015-2025
  • New Installed ESRI Energy Capacity by Technology and Application, Latin America: 2015-2025
  • New Installed ESRI Energy Capacity by Technology and Application, Middle East: 2015-2025
  • New Installed ESRI Energy Capacity by Technology and Application, Africa: 2015-2025
  • New Installed ESRI Revenue by Technology and Application, North America: 2015-2025
  • New Installed ESRI Revenue by Technology and Application, Western Europe: 2015-2025
  • New Installed ESRI Revenue by Technology and Application, Eastern Europe: 2015-2025
  • New Installed ESRI Revenue by Technology and Application, Asia Pacific: 2015-2025
  • New Installed ESRI Revenue by Technology and Application, Latin America: 2015-2025
  • New Installed ESRI Revenue by Technology and Application, Middle East: 2015-2025
  • New Installed ESRI Revenue by Technology and Application, Africa: 2015-2025

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