Connect with us

Hi, what are you looking for?

A new report from Morgan Stanley claims that grid storage is now reliable enough to become a mainstay of the utility grid and marginalizing so-called peaker plants.


Morgan Stanley Predicts Market For Grid Storage Will Explode In Next 3 Years

A new report from Morgan Stanley claims that grid storage is now reliable enough to become a mainstay of the utility grid and marginalizing so-called peaker plants.

A new report authored by Stephen Byrd, a utility and cleantech analyst at Morgan Stanley, and Adam Jonas, its auto analyst, shows that they are bullish on the market for grid storage products. “Demand for energy storage from the utility sector will grow more than the market anticipates by 2019–2020,” the pair says.

They predict the demand for grid-scale storage will increase from less than $300 million a year today to as much as $4 billion in the next 2–3 years. Byrd and Jonas believe there will soon be demand for up to 85 gigawatt-hours of storage — worth about $30 billion a year. 85 GWh would be enough to supply most of New York City for a year.

cells for grid storageTheir report, entitled “An Underappreciated Disruptor,” claims that the low price of wind and solar energy together with the falling price of grid storage products has created a situation in which renewable energy is now reliable enough to be considered a mainstay of the utility industry and not just a specialty player, such as on the island of Kauai in Hawaii.

Demand for electricity peaks in the morning and late afternoon. Traditionally, that’s when so-called “peaker plants” get brought online to handle the extra load. But firing up and then shutting down those facilities costs utility companies lots of money. If they have access to grid-scale storage, they can access it instantaneously and save substantial sums of money.

Owners of those peaker plants will be squeezed by an increase in grid-scale storage capacity. “Storage effectively provides a low-cost source of power, eliminating the need for the highest cost, least efficient conventional power plant,” says the report. “We think utilities could deploy storage as a way to enable the growth of renewables and/or defer costly transmission and distribution projects,” says Byrd.

More grid-scale storage will also promote a more distributed grid architecture, one that employs a “plug and play” model that better suits the needs of utility companies, rooftop solar customers, and electric vehicle owners. “The grid of the future is becoming more complex, necessitating improved grid infrastructure to accommodate a proliferation of distributed energy resources,” Byrd and Jonas suggest in their report.

Source: Forbes | Photo via Morgan Stanley

Appreciate CleanTechnica’s originality and cleantech news coverage? Consider becoming a CleanTechnica Member, Supporter, Technician, or Ambassador — or a patron on Patreon.
Don't want to miss a cleantech story? Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News!
Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.
Written By

Steve writes about the interface between technology and sustainability from his homes in Florida and Connecticut or anywhere else the Singularity may lead him. You can follow him on Twitter but not on any social media platforms run by evil overlords like Facebook.


You May Also Like


Originally posted on EVANNEX. Written by Charles Morris.


Originally published on EV Annex. Doesn’t it feel like the news is always so negative nowadays? Well, there is a bright spot out there. And it happen...

Autonomous Vehicles

This article is on some interesting things that Adam Jonas has said recently on Tesla and legacy auto. We have written a lot about...


Wow, how things change. Ten months ago, I wrote an article after Morgan Stanley’s Adam Jonas declared to investors that he felt that GM’s...

Copyright © 2021 CleanTechnica. The content produced by this site is for entertainment purposes only. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of CleanTechnica, its owners, sponsors, affiliates, or subsidiaries.