Navigant Research Expects Total Annual Revenue for Energy Storage for Renewables Integration to Exceed $23 Billion by 2026
Utility-scale and behind-the-meter applications are expected to experience the strongest growth, report finds
BOULDER, Colo. — A new report from Navigant Research examines the global market for energy storage for renewables integration (ESRI), with a focus on six utility-scale, commercial and industrial, and residential applications.
As costs for renewable energy projects drop and policies and resilience demands increase, capacity for wind and solar PV continues to rise across all regions and market segments. This uptick in large-scale additions of variable forms of generation presents challenges to the electrical grid, but energy storage systems (ESSs) are helping to mitigate concerns and integrate renewable energy resources without affecting grid reliability. Click to tweet: According to a new report from @NavigantRSRCH, total annual revenue for ESRI is expected to exceed $23 billion by 2026.
“Thanks to the continued drop in prices in energy storage, solar PV, and wind, ESRI is forecast to see strong growth across both utility-scale and behind-the-meter (BTM) applications,” says Adam Wilson, research analyst with Navigant Research. “Interestingly, while utility-scale renewable prices are experiencing bigger declines, formidable drivers in the BTM market, such as peak shaving and incentive programs specific to energy storage, are expected to push the segment to account for roughly two-thirds of forecast global ESRI capacity through 2026.”
According to the report, solar PV has reached grid parity in several locations around the globe and no longer requires policy incentives in order to justify deployment in many markets. ESSs have also experienced steady price decreases over the last 5 years and are establishing a growing presence in the grid-tied and remote system markets. This has provided customers in both utility-scale and BTM markets greater flexibility in installing economically viable solar PV plus energy storage systems.
The report, Energy Storage for Renewables Integration, examines the global market for ESRI, with a focus on six utility-scale, commercial and industrial, and residential applications. The study provides an analysis of the market issues, including business cases, drivers, and barriers, associated with ESRI. Global market forecasts for capacity and revenue, segmented by application and region, extend through 2026. The report also examines the key technologies and costs related to utility-scale and BTM renewables plus energy storage, as well as regional policy incentives and resources for ESRI. An Executive Summary of the report is available for free download on the Navigant Research website.
About Navigant Research
Navigant Research, the dedicated research arm of Navigant, provides market research and benchmarking services for rapidly changing and often highly regulated industries. In the energy sector, Navigant Research focuses on in-depth analysis and reporting about global clean technology markets. The team’s research methodology combines supply-side industry analysis, end-user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of the Energy Technologies, Utility Transformations, Transportation Efficiencies, and Buildings Innovations sectors. Additional information about Navigant Research can be found at www.navigantresearch.com.
Navigant Consulting, Inc. is a specialized, global professional services firm that helps clients take control of their future. Navigant’s professionals apply deep industry knowledge, substantive technical expertise, and an enterprising approach to help clients build, manage and/or protect their business interests. With a focus on markets and clients facing transformational change and significant regulatory or legal pressures, the Firm primarily serves clients in the healthcare, energy and financial services industries. Across a range of advisory, consulting, outsourcing, and technology/analytics services, Navigant’s practitioners bring sharp insight that pinpoints opportunities and delivers powerful results. More information about Navigant can be found at navigant.com.
* The information contained in this press release concerning the report, Energy Storage for Renewables Integration, is a summary and reflects Navigant Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.