The utility-scale market focuses on energy storage for the grid and ancillary services (ESGAS), which refers to five of the most common applications for energy storage situated on the utility side of the meter. While this industry has matured significantly over the past 2 years, activity remains concentrated in select countries. In these countries, the availability of financing, favorable regulations, and innovative business models are helping to drive unprecedented growth. New projects are increasingly being announced in countries outside these core markets, but sustained growth remains a challenge.
The growth of energy storage is expected to continue following the increasing development of renewable generation. Many countries have recently seen significant growth in renewable generation, but energy storage has yet to take hold. This is expected to change in the coming years as energy storage system (ESS) prices continue to decline and project developers gain experience efficiently building, integrating, and monetizing ESSs alongside renewable plants. Perhaps the most significant trend demonstrating the growing maturity and potential of this industry has been the availability of financing driven by greater investor confidence and the involvement of larger corporations. As previously built projects continue to bring stable returns and significant value for grid operators, new companies are entering the market to provide capital, project development expertise, and access to new markets.
This Navigant Research report provides an update on the market drivers, technology and application issues, and regional market developments related to the global ESGAS market. The study examines key ESGAS trends, challenges, and growth projections. Global market forecasts, segmented by region, technology, and application segment, extend through 2027. The report also examines trends in the development of combined renewable energy and ESS plants around the world, as well as the major merger and acquisition activity in the global utility-scale energy storage industry.