Dive Brief:
- Worldwide revenue from energy storage for the grid and ancillary services is expected to total $68.5 billion from 2014 through 2024, according to new data from Navigant Research.
- The firm estimated 362.8 MW of storage projects were announced in the 2013-2014 period, with an almost equal distribution between North America, Asia Pacific and Western Europe.
- While incumbent pumped storage remains dominant in terms of installed capacity, Navigant said the market has started moving quickly to adopt a number of technologies including lithium ion, power-to-gas, flow battery, and compressed air systems.
Dive Insight:
The rise in distributed generation has utilities struggling with how to maintain grid reliability, and increasingly they are turning to energy storage solutions. New research from Navigant indicates the utility-scale storage market is growing rapidly and evenly. Worldwide revenues are expected to total $68.5 billion from 2014 through 2024. And from 2013 to 2014 North America announced 103.3 MW of storage projects; Asia Pacific announced 100.5 MW; and Western Europe another 91.1 MW.
“Developing energy storage that is viable for grid applications has been a goal of vendors and grid operators for a number of years,” said Anissa Dehamna, senior research analyst with Navigant. “Recently a number of factors, including the falling price for lithium-ion battery systems, have begun to converge to bring that goal close to fruition.”
In 2014, Navigant projected the global market for advanced batteries for utility-scale energy storage applications will grow from $164 million in 2014 to more than $2.5 billion in 2023.
