According to a new report from Navigant Research, new installed energy storage systems for renewable energy integration (ESRI) power capacity is expected to grow from 196.2 MW this year to 12.7 GW in 2025.
"It's expected that the compensation schemes for variable generation will drive the market for ESRI, and markets with compensation structures that favor dispatchability and self-consumption of wind and solar electricity will lead the market," says Anissa Dehamna, principal research analyst with Navigant Research." With few exceptions, islands and isolated grids are expected to lead the market in near term due to higher renewables penetration and little to no interconnections with neighboring grid systems to balance instability."
One of the primary drivers of the grid-tied energy storage systems market is the decreasing cost of advanced batteries, according to the report. Though system costs are still one of the biggest barriers to the industry's growth, declining prices and a flood of new systems integrators are opening up new-use cases and geographic markets.
The report, Energy Storage for Renewables Integration, analyzes the global ESRI market, focusing on four primary applications: commercial ESRI, residential ESRI, utility-scale solar integration and utility-scale wind integration.
The study provides an analysis of the market issues – including business cases, opportunities and challenges – associated with ESRI. Global market forecasts for capacity and revenue are broken out by application, technology and region. The report also examines the key technologies related to ESRI, as well as the competitive landscape.
An executive summary of the report is available here.