Energy Storage Systems for Microgrids to Reach Nearly $4.2 Billion in Market Value by 2024, Forecasts Navigant Research Technology can help reduce the payback period on microgrid installations, report finds
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. Click to tweet: 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 percent 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. The report also examines the main technologies related to microgrid software and controls, with a focus on advanced batteries and flywheels, and provides profiles of the key industry players. 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 Smart Energy, Smart Utilities, Smart Transportation, and Smart Buildings sectors. Additional information about Navigant Research can be found at www.navigantresearch.com.
Navigant is a specialized, global expert services firm dedicated to assisting clients in creating and protecting value in the face of critical business risks and opportunities. Through senior level engagement with clients, Navigant professionals combine technical expertise in Disputes and Investigations, Economics, Financial Advisory and Management Consulting, with business pragmatism in the highly regulated Construction, Energy, Financial Services and Healthcare industries to support clients in addressing their most critical business needs. More information about Navigant can be found at www.navigant.com.
* The information contained in this press release concerning the report, 'Energy Storage for Microgrids,' 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.
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