A new report from Navigant Research is forecasting distributed energy storage revenue to exceed $16.5 billion by 2023, due to “rapid innovation and intense competition.”
The report, published Monday, analyzed the global market for distributed energy storage systems, including global market forecasts for power capacity, energy capacity, and revenue. In fact, according to Navigant, distributed energy storage systems are one of the fastest growing markets for energy storage globally.
And that’s a trend Navigant expects to continue throughout the next decade.
Installed DESS Power Capacity by Application, World Markets: 2014-2024
“Distributed energy storage markets have grown significantly in the past 2 years as grid operators, utilities, and governments have put in place market signals to encourage storage installations that are physically situated closer to the retail electricity customer,” the report’s authors write. Innovations, controls, inverters, and other technologies have also helped grow these markets.
The report comes just a few days after a similar report predicted grid-scale energy storage is expected to pass $68 billion in revenue between 2014 and 2024. One of the primary reasons for growth in this storage sector, however, comes back to the rise of distributed generation, and the need to balance loads as a result.
“The development of advanced battery chemistries, including lithium ion (Li-ion), flow batteries, advanced lead-acid, and other next-generation chemistries, has enabled rapid advancement in the distributed storage market,” says Anissa Dehamna, senior research analyst with Navigant Research. “These advances are helping to meet demand for distributed and flexible resources created by the spread of solar PV, electric vehicles, electric vehicle charging, and home energy networks.”