Driven largely by the increasing use of solar and wind generation, interest is mounting in energy storage to maintain grid stability and increase efficiency by allowing nonessential fossil fuel power plants to close, with utility-scale energy storage (UES) considered a key component of new power system planning efforts.
In an article for Smart Energy International, Ricardo Rodriguez, research analyst with Guidehouse Insights, says that cumulative utility-scale energy storage deployment revenue is projected to exceed $215 billion by 2030, representing a significant opportunity.
“As the market matures, the role of utility-scale energy storage systems integrators (UESSIs) has become the key position in the value chain for ensuring that projects are successfully built and that they become profitable,” Rodriguez said.
In recent years, UES integration companies have shifted their focus from turnkey project development (including systems integration) to a more pure-play systems integrator and operator role. This transition has occurred as systems integrators have become better at optimizing the value of energy storage across multiple revenue streams for different customers, using sophisticated software and controls. The multi-year pattern of record-breaking deployments of UES coupled with the confluence of cheaper, more capable components and the democratization of analytical prowess, is the source of increasing competition in the UES integration space.
In the article, Rodriguez explains that UES is currently projected to play a major role in future decarbonized electricity grids around the world. Government policies, utility procurement targets, and regulatory bodies have begun to forecast greater levels of UES deployments, with project sizes of larger power capacity also being planned around the world.
“The next few years will be pivotal as these technologies look to scale, which requires significantly more investment to grow manufacturing and win new projects.,” Rodriguez said. “Companies that are able to attract this investment and achieve scale can improve their cost-competitiveness and bankability, supporting continued growth.”
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