By Editors of Power Engineering
A new report by Navigant Research indicates total annual revenue for energy storage for renewables integration will exceed $23 billion by 2026.
The growth will be driven by falling costs for energy storage systems, falling costs for renewable energy projects and grid resilience challenges brought on by renewable growth.
“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 applications,” said 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.”
The report noted solar generation has reached grid parity in several locations and no longer requires policy incentives in order to justify deployment in a number of markets.