As global energy networks become smarter and more flexible, incorporating a range of power sources including renewables, grid energy storage will play a key role. And it’s not just about advanced batteries – energy storage systems also need power conversion systems, software and controls, and systems integration services.
A new report from Navigant Research examines the market for the supporting technologies associated with energy storage systems, including utility-scale storage as well as community storage, residential storage and commercial storage. It predicts that worldwide revenue from energy storage enabling technologies (ESETs) will grow from $605 million annually in 2015 to more than $21 billion by 2024.
The research firm notes that while battery prices have fallen by around 40% to 60% in the past 18 months thanks to manufacturing innovations and volumes, there is still wide variation in the overall pricing of energy storage systems.
However, now that battery prices have responded to cost pressures, vendors are under pressure to deliver more consistent, lower pricing. Once that happens, greater price transparency is anticipated to allow the industry to scale further.
According to the report, the distribution of the market among the three ESET segments will most likely be skewed toward systems integration. In the power conversion segment, meanwhile, the ability to reduce costs is directly related to manufacturing strategies. As the market grows the supply chain will respond, becoming more robust – as the industry has already seen with lithium ion battery cells, Navigant Research said.