Decentralized Energy, Energy Storage, Solar, World Regions

Distributed energy storage to grow 20-fold by 2028 says study

Navigant Research has released a new report providing market forecasts for newly installed distributed energy storage systems (DESSs) in terms of power capacity, energy capacity, and revenue across 26 countries. The report forecasts the sector to grow twentyfold by 2028 due to cost declines, government incentives, and increased solar PV integration.

The distributed energy storage industry has seen significant growth over the past five years. Breakthroughs in adjacent digital technologies, including artificial intelligence, blockchain, and predictive analytics, are facilitating the emergence of DESSs as a key enabling technology for aggregated distributed energy resources (DER) solutions.

“DESSs are inherently flexible, can be deployed rapidly, and have the potential to generate multiple value streams,” says Ricardo F. Rodriguez, research analyst with Navigant Research. “They can also provide multiple grid and customer benefits, like reducing congestion on the network or limiting the need for peak capacity resources.”

Utility involvement, along with cost declines, government incentives, and increased solar PV integration are the primary growth drivers responsible for increased DESS deployments.

Yet despite increasing momentum, long-standing uncertainties concerning feasible uses and cost-effectiveness remain. Consequently, DESSs are expected to remain concentrated in select markets in the near term before spreading to new areas as system costs decrease and business models continue to be refined.

The report, Country Forecasts for Distributed Energy Storage, provides forecasts for distributed-scale ESSs deployed globally in terms of power capacity (MW), energy capacity (MWh), and revenue generated from the development of new projects in 26 countries.

These forecasts cover systems providing all major distributed-scale energy storage services and applications. The report details developments in 16 major countries.

Forecasts include the most common technologies for distributed-scale energy storage for 2019-2028. An Executive Summary of the report is available for free download on the Navigant Research website.