The worldwide distributed energy storage market could be worth $68 billion from 2014 to 2024, according to a report by Navigant Research.
The report, “Energy Storage for the Grid and Ancillary Services” analyses the global market for grid-scale storage, with a focus on bulk and ancillary service applications.
According to Navigant Research, global installed energy storage for grid and ancillary services power capacity is expected to grow from 538.4MW in 2014 to 20.8GW in 2024.
There are several challenges that still remain for grid-scale storage, such as supply chain development and integration expertise, which are still underdeveloped across nearly every storage technology.
The current market winners are vendors that have shifted away from being pure-play technology firms and developed systems integration expertise to complement their technology.
“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, including the falling price for lithium-ion battery systems, have begun to converge to bring that goal close to fruition,” said Anissa Dehamna, senior research analyst at Navigant Research.
Although pumped storage remains the dominant technology in terms of installed capacity, the market has started moving quickly across technologies including lithium-ion, power-to-gas, flow battery and compressed air systems.
The study can be downloaded here.