The global energy storage industry reached significant milestones in 2015, and momentum is expected to continue through 2016 and beyond. Rapidly falling technology costs and innovative new business models are combining with government policies and regulatory reforms to enable a dynamic and fast growing market for energy storage. The wide variety of technologies being deployed and applications being served by new energy storage systems (ESSs) demonstrate the increasing diversity and competition in the industry. Energy storage markets around the world are expected to continue growing substantially in the coming year, with several gigawatts worth of projects in the global pipeline for 2016.
The rapid growth rates seen in key energy storage markets are changing the dynamics of the industry as increased competition drives innovation. The emergence of new players both from inside and outside of the traditional energy industries is creating a progressive market that will begin affecting grid operations at all levels. Battery energy storage systems continue to be the focus for the majority of new deployments and innovation in the industry as some of the world’s largest companies compete for a share of this multibillion-dollar industry.
This Navigant Research white paper presents the top five trends for the energy storage industry in 2016 and beyond. The report examines some of the major market issues driving investment in energy storage around the world and how various stakeholders are adapting to the changing market. Each of the topics in this white paper is examined more deeply in research reports and ongoing research from Navigant Research’s Grid-Tied Energy Storage and Advanced Batteries Research Services.
Key Questions Addressed:
- What are the five major trends shaping the global energy storage industry in 2016 and beyond?
- What are the various business models for grid energy storage around the world?
- How will increasing competition shape the energy storage industry?
- What technology trends are affecting the energy storage industry?
- How will the rapidly increasing rate of deployments affect the energy storage industry?
Who needs this report?
- Energy storage technology vendors
- Energy storage project developers
- Smart grid controls and software companies
- Energy engineering, procurement, and construction (EPC) firms
- Inverter companies
- Investor community
Table of Contents
1. Executive Summary
1.2 Top Five Trends for Energy Storage in 2016 and Beyond
2. Five Energy Storage Trends to Watch
2.1 The Rise of New Standard Energy Storage System (ESS) Contracts Will Drive Consumer and Utility Storage Markets
2.1.1 2016: Proof of Concept
18.104.22.168 Southern California Edison’s Energy Storage Services Agreements
22.214.171.124 Behind-the-Meter Power Efficiency Agreement
126.96.36.199 RES Americas’ Frequency Regulation Project Financing
2.1.2 Beyond: Standardized Contracts Driving the New Energy Storage Asset Class
2.2 Modularity Driven by Lean Manufacturing Concepts Will Take Storage by Storm
2.2.1 2016: Proof of Concept
188.8.131.52 Electric Power Research institute’s Energy Storage Integration Council
184.108.40.206 The Modular Energy Storage Architecture Standards Alliance
220.127.116.11 SCE’s Pre-Engineered ESSs
2.2.2 Beyond: Modular Systems for Revenue Stacking
2.3 Innovation from Blue Chip IT Companies Will Lead Storage into the DER/Energy Cloud Space
2.3.1 2016: Proof of Concept
2.3.2 Beyond: Diversifying Energy Storage Technologies
2.4 Utilities Will Embrace Residential Storage
2.4.1 2016: Proof of Concept
2.4.2 Beyond: Utilities Become Network Orchestrators
2.5 Energy Storage-Enabled Virtual Power Plants (VPPs) Will Invade Energy Markets
2.5.1 2016: Proof of Concept
2.5.2 Beyond: Regulators Create VPP Asset Class Giving Rise to VPP Developers
3. Conclusions and Recommendations
4. Acronym and Abbreviation List
5. Table of Contents
6. Table of Charts and Figures
7. Scope of Study, Sources and Methodology, Notes
List of Charts and Figures
- Utility Residential Storage Programs by Ownership Model