The NEC Energy Solutions Blog

Energy storage market poised for growth in nuanced ways

Demand for energy storage systems isn’t just expanding in the sense that more organizations want to take advantage of the technology. Grid operators are also beginning to look at using batteries in sophisticated ways, showing significant maturation in the industry.

Energy storage may have hit a tipping point
A recent study from Navigant Research found that the raw cost of batteries may have finally decreased to the point that the industry is focused on the system integration and storage enabling technologies that go alongside lithium-ion batteries. Anissa Dehamna, principal research analyst with Navigant Research, explained that the energy storage market has evolved to a point where the supporting system around the battery has become a priority.

“The grid-tied energy storage market is poised to take off, however, pricing remains inconsistent and economies of scale have yet to translate into accessible system costs for the end user,” said Dehamna. “ESSs consist of a core storage technology as well as power conversion systems, software, and controls, and in addition to the hardware and software in an ESS, systems integration expertise is required to deliver a fully intelligent, bankable system to the customer.”

“The raw cost of batteries has declined.”

California headlines diversity in energy storage market
A recent Greentechmedia report delved deeply into how California’s policies surrounding energy storage are shifting and how the evolution underway in the state is driving innovation. The growth of energy storage, both in front of and behind the meter, is a complex matter in California. However, one trend was fairly clear coming out of Intersolar 2015 – utilities are working hard to explore advanced ways to use energy storage. These include looking at batteries to handle the distributed generation trends happening in California and considering how energy storage can be used to defer the costs of expensive projects.

Energy storage gaining as a global trend
In the United States, energy storage technologies have taken a turn toward maturation. Efforts are being made to look at the sophistication of the system surrounding batteries and to consider new ways to use batteries to deliver value throughout the utility pipeline.

However, it is worth noting that the energy storage market’s evolution isn’t exclusive to the United States. A recent Frost & Sullivan study found that the energy storage market is on the brink of a major breakthrough into dynamic growth. Research indicated that 2017 will be the tipping point when the energy storage sector really accelerates to another level of rapid expansion.

1 Comment

  1. Kurt says:

    Great Article!

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