Study shows distributed energy storage will grow 20-fold by 2028

A new report from Navigant Research, which provides market forecasts for power capacity, energy capacity and revenues from newly installed distributed energy storage systems (DESSs) in 26 countries, predicts that the industry will grow 20-fold by 2028, driven by falling costs, government incentives and increased solar PV integration.

The distributed energy storage industry has seen significant growth over the past five years. Breakthroughs in digital technologies, including artificial intelligence, blockchain, and predictive analytics, are driving the emergence of distributed energy storage systems (DESSs) as a key enabling technology for aggregated distributed energy resources (DER) solutions.

“Distributed energy storage services are inherently flexible, can be deployed quickly, and have the potential to generate multiple value streams,” said Ricardo F. Rodriguez, research analyst at Navigant Research. “They can also provide multiple grid and customer benefits, such as reducing grid congestion or limiting the need for peak capacity resources.”

Utility participation, falling costs, government incentives, and increasing solar PV integration are the major growth drivers for increased DESS deployment.

However, despite the growing momentum, long-term uncertainty remains regarding viable uses and cost-effectiveness. Therefore, it is expected that there will be continued concentration on specific markets in the short term before expansion into new areas as system costs decrease and business models continue to improve.

The report, Country Forecasts for Distributed Energy Storage, provides forecasts for globally deployed distributed ESSs, including power capacity (MW), energy capacity (MWh), and revenues generated by new projects being developed in 26 countries.

The forecasts cover systems for all major distributed energy storage services and applications. The report details developments in 16 major countries.

The forecast also includes the most common technologies for distributed energy storage from 2019 to 2028. A summary of the report is available for free download on the Navigant Research website.

(Original text from: Global Energy New Energy Network Comprehensive)