Energy Storage Systems for Microgrids to Reach Nearly $4.2 Billion in Market Value by 2024

Energy Storage Systems for Microgrids to Reach Nearly $4.2 Billion in Market Value by 2024

Delivering services both to microgrids and, in the case of grid-tied systems, to the centralized grid, energy storage is becoming an essential enabling technology for all types of microgrids. Energy storage can reduce the payback period of the microgrid, by enabling an increase in the penetration of renewable energy sources or by reducing diesel fuel consumption.

According to a recent report from Navigant Research, the worldwide market value for energy storage for microgrids will grow from $662 million annually in 2014 to nearly $4.2 billion in 2024.

Rapid expansion of the microgrid market over the next 10 years will drive increased demand for energy storage associated with these systems, says Anissa Dehamna, senior research analyst with Navigant Research. Energy storage systems can also allow participation in deregulated ancillary service markets, further improving the economics of the overall system.

The strongest market for energy storage for microgrids, according to the report, will be the grid-tied customer-owned microgrid segment in North America, which is supported by robust growth in microgrids and favorable regulatory developments. Technology adoption in this region is balanced between all technologies, with an emphasis on lithium ion (Li-ion) batteries, which are anticipated to represent up to 40 per cent market share in North America by 2024.

The report, Energy Storage for Microgrids, analyzes the global market for energy storage in microgrids in six key segments: grid-tied customer-owned, grid-tied utility-owned, grid-tied military, remote customer-owned, remote utility-owned, and remote military microgrids. The report defines the different microgrid types and provides an analysis of the ESS services and market drivers associated with energy storage in microgrids. Global market forecasts for capacity and revenue, segmented by region, technology, and microgrid type, extend through 2024.

Source: Navigant Research

SMART GRID Bulletin July 2017


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