New Hampshire — Coming on the heels of Demand Energy’s announcement that it is installing 1 MW of energy storage capacity in a series of Glenwood residential apartment buildings in New York City, a report released today concludes that the distributed energy storage market will increase almost 10-fold over the next three years.
Navigant Research’s report, “Community, Residential, and Commercial Energy Storage,” analyzes the global market for distributed energy storage systems, with a focus on three distinct applications: community energy storage (specifically energy storage at the distributed transformer), residential energy storage (with and without solar PV), and commercial energy storage. The firm said that rapid innovation and intense competition in the space has resulted in the market growing faster than industry expectations.
Grid operators, utilities, and governments are now encouraging storage installations that are physically situated closer to the retail electricity customer. As in the case of Con Ed and NYSERDA, the agencies are encouraging distributed energy systems in New York by offering steep incentives for energy storage projects.
Growth in this market is being fueled by the development of advanced battery chemistries, particularly lithium ion (Li-ion), according to the Navigant report. At the same time, the spread of solar PV, electric vehicles, electric vehicle charging, and home energy networks are all creating new applications and new demand for distributed energy storage.
By 2024, the report finds, total worldwide capacity is expected to exceed 12 GW.
“Distributed storage is among the fastest-growing markets for energy storage globally,” said Anissa Dehamna, an analyst with Navigant Research. “In particular, residential and commercial energy storage are expected to be the focus of technological advances and market activity in the coming years.”
Lead image: Global upward growth. Credit: Shutterstock.