Investment Has Become the Most Common Strategy for Energy Storage Integration, According to Navigant Research

Utilities represent important drivers for enabling energy storage to scale globally, report finds

BOULDER, Colo.--(BUSINESS WIRE)--A new report from Navigant Research provides an overview of issues facing utilities as they seek to integrate energy storage, including strategies and examples from countries around the world.


While cost-effective advanced energy storage technologies are providing utilities and grid operators with new tools to improve system reliability and lower costs, these systems also present risks as relatively new technologies are integrated into existing networks. Given the complexity surrounding energy storage, utilities around the world are exploring different approaches to working with related technologies. Click to tweet: According to a new report from Navigant Research, the most common and best understood strategy is investment, where energy storage is installed to avoid a costly transmission or distribution upgrade, improve reliability, or increased flexibility in a grid system.

"Utilities have matured in their approaches, developing distinctive strategies to transform energy storage from a possible threat into a likely opportunity," says Anissa Dehamna, principal research analyst with Navigant Research. "As these approaches evolve, risk management is expected to be a primary concern for utilities as they develop, test, and execute an energy storage strategy."

As a result of their buying power, brand recognition, and ability to drive regulatory change, utilities represent one of the most important drivers for enabling energy storage to truly scale globally. According to the report, utility-owned energy storage systems (ESSs) account for 27 percent of the global ESS pipeline, with nearly 9,000 MW of new utility-owned energy storage capacity expected to be deployed by 2020.

The report, Utility Energy Storage Strategies, provides an overview of issues facing utilities as they seek to integrate energy storage and the approaches being taken. The study examines the major approaches utilities are using with energy storage, including the investment, virtual power plant (VPP), and product strategies. Specific attention is given to the risks associated with each strategy being explored by utilities. Examples from around the world detail the various approaches being employed to work with the dynamic and valuable new technologies associated with energy storage. An Executive Summary of the report is available for free download on the Navigant Research website.

About Navigant Research

Navigant Research, the dedicated research arm of Navigant, provides market research and benchmarking services for rapidly changing and often highly regulated industries. In the energy sector, Navigant Research focuses on in-depth analysis and reporting about global clean technology markets. The team's research methodology combines supply-side industry analysis, end-user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of the Energy Technologies, Utility Transformations, Transportation Efficiencies, and Buildings Innovations sectors. Additional information about Navigant Research can be found at www.navigantresearch.com.

About Navigant

Navigant Consulting, Inc. is a specialized, global professional services firm that helps clients take control of their future. Navigant's professionals apply deep industry knowledge, substantive technical expertise, and an enterprising approach to help clients build, manage and/or protect their business interests. With a focus on markets and clients facing transformational change and significant regulatory or legal pressures, the Firm primarily serves clients in the healthcare, energy and financial services industries. Across a range of advisory, consulting, outsourcing, and technology/analytics services, Navigant's practitioners bring sharp insight that pinpoints opportunities and delivers powerful results. More information about Navigant can be found at navigant.com.

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