In a Utility Dive Brief, Guidehouse Insights discusses why the energy storage for microgrids capacity is expected grow globally
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.
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.