2Q 2018

Innovations in Power Conversion Technology for Grid Storage

Utility-Scale, Behind-the-Meter, and Off-Grid Storage: Market Dynamics, Technology Trends, and Global Forecasts

As the global energy storage industry continues its path of rapid growth and technological innovation, power conversion systems (PCS) are emerging as a key enabling technology to facilitate optimal grid integration. Much of the industry focus over the past several years has been on battery technology, with significant decreases in prices and improvements in technical capabilities. Today, the industry is approaching maturity in some markets, and the focus is shifting from battery hardware to the other components of an energy storage system (ESS), specifically the balance of system (BOS) and PCS. While batteries are becoming more standardized commodity products, PCS and inverters serve increasingly advanced system management and grid interaction functions.

Several technological innovations have been introduced recently in the energy storage PCS industry that will allow for the more widespread use of energy storage on the grid. Key innovations include smart islanding and backup power, lower costs with new materials and designs, and automated grid support functionality. Energy storage PCS are evolving into perhaps the most important component for ensuring that storage technologies provide their maximum value in facilitating the evolution to a more reliable and sustainable energy system.

This Navigant Research report explores the market landscape for energy storage PCS and the innovations in technology that will enable the new wave of industry growth. The study provides an analysis of the key market and technology issues and outlines the four segments of the energy storage market: utility-scale, behind-the-meter (BTM) commercial and industrial (C&I), BTM residential, and remote/off-grid. Global market forecasts for PCS pricing and annual market size, broken out by segment, component, and region, extend through 2027. The report also examines the major advances in technology related to energy storage PCSs and inverters, as well as the competitive landscape.

Pages 45
Tables | Charts | Figures 33

  • What is the role of power conversion systems (PCS) and inverters in the global energy storage industry?
  • What technological innovations will have the biggest impact on the energy storage PCS market?
  • How is the competitive landscape for energy storage PCS evolving?
  • What energy storage PCS products do different vendors offer?
  • How quickly are energy storage PCS prices expected to fall?
  • What is the size of the market for energy storage PCS in each region and segment?

  • Energy storage inverter vendors
  • Energy storage project developers
  • Renewable energy project developers
  • Energy storage systems integrators
  • Battery vendors
  • Electric utilities
  • Electric grid regulators
  • Investor community

1. Executive Summary

1.1   Market Overview

1.2   Market Forecasts

2. Market and Technology Issues

2.1   Market Issues

2.1.1   Energy Storage Market Overview

2.1.1.1   Utility-Scale Storage

2.1.1.2   BTM Storage

2.1.1.3   Remote/Off-Grid Storage

2.1.2   Energy Storage Inverter Market

2.2   Technology Issues

2.2.1   Core Functionality for Inverters

2.2.2   Relevant Codes and Standards

2.2.3   Key Advances in Technology

2.2.3.1   General Advances

2.2.3.2   Utility-Scale Storage

2.2.3.3   BTM Storage

3. Key Industry Players

3.1   ABB

3.2   Dynapower

3.3   Hyosung

3.4   Rhombus Energy Solutions

3.5   SolarEdge

3.6   Other PCS Vendors

4. Market Forecasts

4.1   Methodology

4.2   Inverter Price Forecasts

4.3   Forecasts by Region

4.4   Forecasts by Market Segment

4.5   Conclusions and Recommendations

5. Acronym and Abbreviation List 

6. Table of Contents 

7. Table of Charts and Figures 

8. Scope of Study, Sources and Methodology, Notes

  • Average Pricing Assumptions, Installed PCS by Market Segment, World Markets: 2018-2027
  • Annual Installed PCS Revenue by Region, Battery Technologies Only, All Market Segments: 2018-2027
  • Annual Installed PCS Revenue by Market Segment, Battery Technologies Only, World Markets: 2018-2027
  • Power Conversion System Vendors in the Energy Storage Value Chain
  • SolarEdge Solar Plus Storage Installation
  • Location of PCS at ECP and PPC for a BTM Residential-Scale Energy Storage Project
  • Location of PCS at ECP and PPC for a Large-Scale Solar Plus Storage Project
  • Electrical Configuration of Islanding Inverters for DER
  • Grid Support Codes and Standards for Energy Storage Inverters
  • Ideal Power’s Estimated Converter Efficiency
  • Four Quadrant Inverter Operation
  • Tesla Powerwall 2 Integrated Product Design
  • The Connected Home

  • Applications for Utility-Scale Energy Storage
  • BTM Energy Storage Drivers, Services, and Benefits
  • Other Industry Participants
  • Annual Installed Energy Storage Energy Capacity by Region, Utility-Scale, World Markets: 2018-2027
  • Annual Installed Energy Storage Energy Capacity by Region, Commercial and Industrial, World Markets: 2018-2027
  • Annual Installed Energy Storage Energy Capacity by Region, Residential, World Markets: 2018-2027
  • Annual Installed Energy Storage Energy Capacity by Region, Remote/Off-Grid, World Markets: 2018-2027
  • Average Pricing Assumptions, Installed PCS by Market Segment, World Markets: 2018-2027
  • ESS Cost Breakdown by Component, Percentage of Total System Costs, Utility-Scale 4-Hour Duration Li-Ion Battery System, World Averages: 2018, 2022, 2027
  • ESS Cost Breakdown by Component, Percentage of Total System Costs, Behind-the-Meter Residential 5 kW/13 kWh Li-Ion Battery System, World Averages: 2018, 2022, 2027
  • ESS Cost Breakdown by Component, Percentage of Total System Costs, Behind-the-Meter C&I 100 kW/200 kWh Li-Ion Battery System, World Averages: 2018, 2022, 2027
  • Annual Installed PCS Revenue by Region, Battery Technologies Only, All Market Segments: 2018-2027
  • Annual Installed PCS Revenue by Market Segment, Battery Technologies Only, World Markets: 2018-2027
  • Annual Installed PCS Revenue by Market Segment, Battery Technologies Only, North America: 2018-2027
  • Annual Installed PCS Revenue by Market Segment, Battery Technologies Only, Western Europe: 2018-2027
  • Annual Installed PCS Revenue by Market Segment, Battery Technologies Only, Eastern Europe: 2018-2027
  • Annual Installed PCS Revenue by Market Segment, Battery Technologies Only, Asia Pacific: 2018-2027
  • Annual Installed PCS Revenue by Market Segment, Battery Technologies Only, Latin America: 2018-2027
  • Annual Installed PCS Revenue by Market Segment, Battery Technologies Only, Middle East: 2018-2027
  • Annual Installed PCS Revenue by Market Segment, Battery Technologies Only, Africa: 2018-2027

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