Energy Storage for the Grid is Expected to Reach $15.6 Billion in Annual Revenue by 2024

Developing energy storage that is viable for 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.

According to a new report from Navigant Research, worldwide revenue from energy storage for the grid and ancillary services is expected to grow from $675 million annually in 2014 to $15.6 billion in 2024.

“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.

The report, “Energy Storage for the Grid and Ancillary Services,” analyzes the global market for utility-scale energy storage for both bulk an ancillary service applications. Specifically, the markets analyzed in this report are: grid asset optimization, wind integration, solar integration, arbitrage, T&D upgrade deferral, frequency regulation, voltage support, spinning reserve, electric supply reserve capacity, and load following.  The report provides an analysis of the market issues, opportunities, and market challenges, associated with utility scale storage.  Global market forecasts for power capacity, energy capacity, and revenue, broken out by both segment and region, extend through 2024.  The report also examines the key technologies related to utility-scale energy storage, as well as the competitive landscape.  An Executive Summary of the report is available for free download on the Navigant Research website.