Energy Storage-Enabled Virtual Power Plants Are Expected to Invade Energy Markets, According to Navigant Research
Modularity driven by lean manufacturing concepts is expected to take energy storage by storm, white paper finds
BOULDER, Colo.--(BUSINESS WIRE)--A new white paper from Navigant Research examines five major trends and the related market forces expected to shape the future of the energy storage industry in 2016 and beyond.
The global energy storage industry reached significant milestones in 2015, and momentum is expected to continue as rapidly falling technology costs and innovative business models combine with government policies and regulatory reforms to create a dynamic market for energy storage. As the industry matures, Navigant Research foresees five trends likely to shape the future of energy storage, including one that represents a key business model for distributed energy storage. Click to tweet: According to a new report from Navigant Research, energy storage-enabled virtual power plants (VPPs) are expected to invade energy markets, serving as highly networked systems and precursors to a fully functional Energy Cloud.
"The energy storage industry began to noticeably scale in 2015," says Anissa Dehamna, principal research analyst with Navigant Research. "Looking to 2016 and beyond, it is expected that the energy storage industry will resolve persistent issues such as standardized contracts and modular system design, embrace new business models such as residential storage and virtual power plants, and begin to see pressure and interest from the IT space."
Navigant Research also believes that the energy storage sector will leverage the lessons learned from distributed solar to quickly standardize how energy storage system components should be built and how they should perform and communicate to each other and the grid. According to the white paper, this modular evolution will allow project developers and ESS hardware and software suppliers to apply traditional lean manufacturing concepts to rapidly reduce project costs, resulting in more modular ESSs with standardized power and energy performance capabilities and lower costs over the near- to mid-term.
The white paper, Five Trends for Energy Storage in 2016 and Beyond, presents the top five trends for the energy storage industry in 2016 and beyond. This report examines some of the major market issues driving investment in energy storage around the world and how various stakeholders are adapting to the changing market. Each of the topics in this white paper is examined more deeply in research reports and ongoing research from Navigant Research's Grid-Tied Energy Storage and Advanced Batteries Research Services. 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.
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.