Over the coming decade, nearly 37 GW of new energy storage capacity for microgrids is expected to be installed globally with the fastest growing segment being commercial and industrial clients. This is expected to generate approximately $40.1 billion in revenue.

Referencing findings from a Guidehouse Insights report, a new brief from Utility Dive explained that there are several factors driving market adoption, including:

• Innovation in business and financing models is reducing the risk of upfront costs to customers
• Commercial and industrial clients are concerned with high utility rates, specifically in California and the Northeast
• There are growing grid reliability concerns during hurricane and wildfire seasons 

The report also highlighted that the current leading storage technology for microgrids is the lithium-ion battery, however, it noted that this product may give way to flow batteries as microgrids seek longer-term storage. 

According to Peter Asmus, research director at Guidehouse Insights and the report’s author, “The trend is not just a demand for batteries, but also for the software and technology to manage energy resources." 

As technology preferences evolve, innovations in business models and financing will be important drivers in the growth in energy storage for microgrids, he said.