Energy Storage for Wind and Solar Integration

Market Issues, Business Case Analysis, Technology Issues,
and Forecasts for Energy Storage Systems for Wind and Solar Applications

More than 1,300 GW of wind and solar energy are expected to come online in the next 10 years. This variable generation will create an unprecedented amount of instability on the grid – particularly in key markets within North America, Western Europe, and Asia Pacific. As grid operators adapt to increasing levels of variable generation on their systems, stricter connection requirements and narrower compensation schemes will prompt them to consider energy storage solutions.

Globally, the way in which variable generation is compensated is changing. Key markets are moving away from generous feed-in tariffs and toward feed-in premiums and other market signals to encourage the adoption of variable generation. Major markets for renewables – including Germany, Japan, and the United States – have enacted rules or legislation specifically to encourage the adoption of energy storage systems (ESSs) for the purpose of integrating variable energy sources onto the grid. Navigant Research forecasts that the installed capacity of energy storage systems for solar and wind power integration will total 21.8 GW from 2013 to 2023.

This Navigant Research report analyzes the global market opportunity for energy storage for wind and solar integration across three key application segments: wind, non-distributed solar PV, and 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.

Key Questions Addressed:
  • What are the key characteristics of the business case for ESS for wind, non-distributed solar, and distributed PV applications?
  • What is the value of energy storage for wind and solar energy applications to wholesale energy markets?
  • How large is the market, in terms of megawatts and revenue, by technology and region?
  • Who are the key players in the energy storage for wind and solar integration market?
  • How fast will the market grow and what are the key demand drivers?
  • What is the business case for curtailed renewable energy and the market value of this energy?
Who needs this report?
  • Wind energy equipment manufacturers, project developers, and operators
  • Solar PV energy equipment manufacturers, project developers, and operators
  • Energy storage technology and service providers
  • Major electronics and power systems firms
  • Battery manufacturers and component suppliers
  • Utilities and grid operators
  • Government agencies
  • Investor community

Table of Contents

1. Executive Summary

1.1   Introduction

1.2   Market Drivers for Energy Storage for Wind and Solar

1.3   Competing Technologies in the Energy Storage Market

2. Market Issues

2.1   Introduction

2.2   Applications for ESS

2.3   Compensation for Variable Generation

2.4   Growth in Variable Generation

2.5   Onshore Wind

2.6   Offshore Wind

2.7   Solar

2.7.1   Distributed Solar

3. Business Case for Storage

3.1   Business Case Overview

3.2   Distributed PV

3.2.1   Retail Electricity Rates

3.2.2   Feed-in Tariffs

3.2.3   Distributed PV Plus ESS Capital Expenditure Relief

3.3   Offshore and Onshore Wind

3.3.1   Feed-in Premiums

3.3.2   Negative Pricing

3.3.3   Ancillary Services

3.3.4   Capacity Requirements

3.4   Non-distributed Solar

3.5   Unique Case: California’s Self-Generation Incentive Program

3.6   Business Case Model for ESWS

3.6.1   Results

4. Technology Issues

4.1   Compressed Air Energy Storage

4.2   Hydrogen

4.3   Sodium Sulfur Batteries

4.4   Advanced Lead-Acid Batteries

4.5   Li-ion Batteries

4.5.1   Li-ion Chemistries

4.6   Flow Batteries

4.7   Sodium Metal Halide

5. Key Industry Players

5.1   Introduction

5.2   Ampard

5.3   General Electric

5.4   Gildemeister

5.5   Green Energy Corporation

5.6   LightSail Energy

5.7   Lockheed Martin

5.8   Primus Power

6. Market Forecasts

6.1   Introduction

6.2   Methodology

6.3   Scenarios for ESS Adoption for Wind and Solar Integration

6.4   ESWS Cost Forecast by Technology

6.5   Application Mix

6.6   ESWS Forecast by Technology

6.6.1   Base Scenario

6.7   ESWS Forecast by Region

6.7.1   Base Scenario

6.8   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

  • Variable Generation Forecast and ESWS Market Penetration Scenarios, World Markets: 2013-2023
  • Annual Variable Generation Installed by Region, World Markets: 2012-2023
  • Average Electricity Prices for Residential Customers by Market, Select Markets: 2001-2017
  • Feed-in Tariff for Residential Customers by Market, Select Markets: 2012-2020
  • SGIP Spending, All Technologies and Advanced Energy Storage Systems, California: 2009-2012
  • SGIP Spending for Advanced Energy Storage Compared to All Other Technologies, California: 2009-2012
  • Variable Generation Curtailed by Technology, World Markets: 2013-2023
  • Value at Peak Load of Variable Energy Curtailed by Technology, World Markets: 2013-2023
  • Installed ESWS Cost by Technology, World Markets: 2013-2023
  • New Installed Capacity of Energy Storage for Wind and Solar Integration by Application, Base Scenario, World Markets: 2013-2023
  • New Installed Capacity of Energy Storage for Wind and Solar Integration by Application, Conservative Scenario, World Markets: 2013-2023
  • New Installed Capacity of Energy Storage for Wind and Solar Integration by Application, Aggressive Scenario, World Markets: 2013-2023
  • New Installed Capacity of Energy Storage for Wind and Solar Integration by Technology, Base Scenario, World Markets: 2013-2023
  • New Installed Revenue of Energy Storage for Wind and Solar Integration by Technology, Base Scenario, World Markets: 2013-2023
  • New Installed Capacity of Energy Storage for Wind and Solar Integration by Region, Base Scenario, World Markets: 2013-2023
  • Installed Revenue of Energy Storage for Wind and Solar Integration by Region, Base Scenario, World Markets: 2013-2023

List of Tables

  • Variable Generation Forecast and ESWS Market Penetration Scenarios, World Markets: 2013-2023
  • Annual Variable Generation Installed by Region, World Markets: 2012-2023
  • Summary of Drivers and Customers for ESS with Variable Generation
  • Comparison of European Feed-in Premium Schemes by Country, Select Markets
  • Average Electricity Prices for Residential Customers by Market, Select Markets: 2001-2017
  • Feed-in Tariff for Residential Customers by Market, Select Markets: 2012-2020
  • Self-Generation Incentive Program Key Datapoints, California: 2009-2012
  • Value at Peak Load of Variable Energy Curtailed by Technology, World Markets: 2013-2023
  • Variable Generation Curtailed by Technology, World Markets: 2013-2023
  • Energy Storage Guidelines under SGIP
  • Characteristics of Li-ion Battery Chemistries
  • Ampard SWOT Analysis
  • General Electric SWOT Analysis
  • Gildemeister SWOT Analysis
  • Green Energy Corporation SWOT Analysis
  • LightSail SWOT Analysis
  • Lockheed Martin SWOT Analysis
  • Primus SWOT Analysis
  • Installed ESWS Cost by Technology, World Markets: 2013-2023
  • ESWS Penetration Rates by Application and Scenario, World Markets: 2013-2023
  • New Installed Capacity of Energy Storage for Wind and Solar Integration by Application, Base Scenario, World Markets: 2013-2023
  • New Installed Capacity of Energy Storage for Wind and Solar Integration by Application, Conservative Scenario, World Markets: 2013-2023
  • New Installed Capacity of Energy Storage for Wind and Solar Integration by Application, Aggressive Scenario, World Markets: 2013-2023
  • New Installed Capacity of Energy Storage for Wind and Solar Integration by Technology, Base Scenario, World Markets: 2013-2023
  • New Installed Capacity of Energy Storage for Distributed PV by Technology, Base Scenario, World Markets: 2013-2023
  • New Installed Capacity of Energy Storage for Non-distributed Solar by Technology, Base Scenario, World Markets: 2013-2023
  • New Installed Capacity of Energy Storage for Wind by Technology, Base Scenario, World Markets: 2013-2023
  • New Installed Revenue of Energy Storage for Wind and Solar Integration by Technology, Base Scenario, World Markets: 2013-2023
  • New Installed Capacity of Energy Storage for Wind and Solar Integration by Region, Base Scenario, World Markets: 2013-2023
  • New Installed Capacity of CAES by Region, Base Scenario, World Markets: 2013-2023
  • New Installed Capacity of Hydrogen by Region, Base Scenario, World Markets: 2013-2023
  • New Installed Capacity of NaS Battery by Region, Base Scenario, World Markets: 2013-2023
  • New Installed Capacity of Advanced Lead-Acid by Region, Base Scenario, World Markets: 2013-2023
  • New Installed Capacity of Advanced Lithium Ion by Region, Base Scenario, World Markets: 2013-2023
  • New Installed Capacity of Advanced Flow Battery by Region, Base Scenario, World Markets: 2013-2023
  • New Installed Capacity of SMH by Region, Base Scenario, World Markets: 2013-2023
  • Installed Revenue of Energy Storage for ESWS by Region, Base Scenario, World Markets: 2013-2023
  • Installed Revenue of CAES by Region, Base Scenario, World Markets: 2013-2023
  • Installed Revenue of Hydrogen by Region, Base Scenario, World Markets: 2013-2023
  • Installed Revenue of NaS Battery by Region, Base Scenario, World Markets: 2013-2023
  • Installed Revenue of Advanced Lead-Acid by Region, Base Scenario, World Markets: 2013-2023
  • Installed Revenue of Advanced Lithium Ion by Region, Base Scenario, World Markets: 2013-2023
  • Installed Revenue of Advanced Flow Battery by Region, Base Scenario, World Markets: 2013-2023
  • Installed Revenue of SMH by Region, Base Scenario, World Markets: 2013-2023
  • New Installed Capacity of Energy Storage for Wind and Solar Integration by Region, Base Scenario, World Markets: 2013-2023
  • New Installed Capacity of Energy Storage for Distributed PV by Region, Base Scenario, World Markets: 2013-2023
  • New Installed Capacity of Energy Storage for Non-distributed Solar by Region, Base Scenario, World Markets: 2013-2023
  • New Installed Capacity of Energy Storage for Wind by Region, Base Scenario, World Markets: 2013-2023

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