Investment has Become the Most Common Strategy for Energy Storage Integration

Utilities represent important drivers for enabling energy storage to scale globally

Feb 25, 2016

A new report from Navigant Research provides an overview of issues facing utilities as they seek to integrate energy storage, including strategies and examples from countries around the world.

While cost-effective advanced energy storage technologies are providing utilities and grid operators with new tools to improve system reliability and lower costs, these systems also present risks as relatively new technologies are integrated into existing networks. Given the complexity surrounding energy storage, utilities around the world are exploring different approaches to working with related technologies. Click to tweet: According to a new report from Navigant Research, the most common and best understood strategy is investment, where energy storage is installed to avoid a costly transmission or distribution upgrade, improve reliability, or increased flexibility in a grid system.

“Utilities have matured in their approaches, developing distinctive strategies to transform energy storage from a possible threat into a likely opportunity,” says Anissa Dehamna, principal research analyst with Navigant Research. “As these approaches evolve, risk management is expected to be a primary concern for utilities as they develop, test, and execute an energy storage strategy.”

As a result of their buying power, brand recognition, and ability to drive regulatory change, utilities represent one of the most important drivers for enabling energy storage to truly scale globally. According to the report, utility-owned energy storage systems (ESSs) account for 27 percent of the global ESS pipeline, with nearly 9,000 MW of new utility-owned energy storage capacity expected to be deployed by 2020.

The report, Utility Energy Storage Strategies, provides an overview of issues facing utilities as they seek to integrate energy storage and the approaches being taken. The study examines the major approaches utilities are using with energy storage, including the investment, virtual power plant (VPP), and product strategies. Specific attention is given to the risks associated with each strategy being explored by utilities. Examples from around the world detail the various approaches being employed to work with the dynamic and valuable new technologies associated with energy storage. An Executive Summary of the report is available for free download on the Navigant Research website.

Contact: Lindsay Lorenz


* The information contained in this press release concerning the report, Utility Energy Storage Strategies, 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.