Worldwide revenue from energy storage for the power grid and ancillary services is expected to grow from $675 million annually in 2014 to $15.6 billion in 2024, according to a report from Navigant Research.
Developing energy storage that is viable for power grid applications has been a goal of vendors and grid operators for a number of years. Recently a number of factors have begun to converge to bring that goal close to fruition.
“The grid-scale energy storage market continues to develop in a piecemeal fashion, but there are signals that it is poised for significant expansion in the coming years,” says Anissa Dehamna, senior research analyst with Navigant Research. “In particular, after several years of faltering growth, lithium ion batteries are emerging as the breakout technology in this sector.”
Still, the market challenges are significant for energy storage to be deployed widely on the grid. The industry needs more systems integrators and financing models to succeed, according to the report, as there is more value in providing solutions at the end of the supply chain (such as systems integration, including power conversion systems and inverters) than in the core technologies. As a result, technology vendors have been moving down the supply chain to filling in this void, the report concludes.