Value-Added Services in the Energy Storage System Market Present Opportunities for Innovative Companies to Establish a Leadership Position
Value-added services have played a fundamental role in the growth of the energy storage industry over the past decade and remain an important component of new projects
A new report from Navigant Research discusses how energy storage value-added services (VASs) have evolved and how the storage industry has grown by using VASs to reduce customer risks.
Because potential customers are generally unfamiliar with energy storage system (ESS) technology, VASs are required for projects to be considered bankable by customers and investors. These services shift technological and financial risk for project performance from customers to the battery hardware providers and systems integrators that design and build an ESS. Click to tweet: According to a new report from @NavigantRSRCH, VASs present opportunities for innovative companies to establish a leadership position as the market continues to evolve.
“VASs include operations and maintenance (O&M), warranties, and performance guarantees, which are collectively fundamental components of any project proposal,” says Alex Eller, senior research analyst at Navigant Research. “Energy storage VASs have played a fundamental role in the growth of the energy storage industry over the past decade and will remain an important component of new projects.”
To stay competitive in this market, Navigant Research recommends ESS providers continue to innovate on their existing VASs and maintain flexibility in their offerings to design a VAS program to suit the needs of their customers. Vendors of emerging technology (such as flow batteries) need to offer VASs that can reduce the perceived risk to customers by taking on the on the performance risk themselves.
The report, Energy Storage Value-Added Services Reduce Risk and Unlock Growth Opportunities, discusses how energy storage VASs have evolved and how the storage industry has grown by using VASs to reduce customer risks. The study provides an overview of the ESS project value chain including who provides VASs and innovative approaches that companies are taking to employ VASs in creative ways to reduce risks for customers. The report also analyzes the potential evolution of these services, including opportunities for new business lines and revenue streams to be developed for both incumbents and new entrants in the market. An Executive Summary of the report is available for free download on the Navigant Research website.
* The information contained in this press release concerning the report, Energy Storage Value-Added Services Reduce Risk and Unlock Growth Opportunities, 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.