To advance in this sector, energy project finance investors need to understand the unique risks associated with battery energy storage systems, report finds

BOULDER, Colo.--(BUSINESS WIRE)--A new report from Navigant Research examines the issues, key risks, and technology requirements surrounding the project financing instruments that are emerging in the grid-tied stationary energy storage market for batteries.

Battery energy storage systems (BESSs) for grid-tied stationary applications are now delivering customer and grid value in a more financially predictable way. In turn, these more predictable revenue flows to BESS projects are creating new energy storage financing asset classes expected to speed the adoption of stationary energy storage technology. Click to tweet: According to a new report from @NavigantRSRCH, by 2025, 84 percent of projects in grid-tied stationary battery energy storage market are expected to be financed by third parties or utilities.

"Just as the advent of the solar power purchase agreement was a key driver for the adoption of solar photovoltaics (PV), financing innovation will be a key driver for the adoption of stationary battery energy storage technology," says William Tokash, senior research analyst with Navigant Research. "Now that BESSs are delivering grid benefits in ways that can be better defined financially, new financing asset classes are emerging to support new projects."

The evolution of project finance in the energy sector has been instrumental in the development and construction of coal, combined cycle natural gas, and renewable energy generation assets, according to the report. For energy project finance investors to move into the grid-tied stationary battery energy storage sector, the unique risks associated with the operation of BESSs and potential revenue and operating costs need to be understood and quantified.

The report, Financing Advanced Batteries in Stationary Energy Storage, explores the types of project financing instruments that are emerging in the grid-tied stationary energy storage market for batteries. The study examines the issues, including market drivers and challenges, key risks, and technology requirements, related to battery energy storage project financing. Navigant Research focuses on three battery energy storage financing asset classes: behind-the-meter (BTM) host-controlled projects, BTM utility-controlled projects, and front-of-the-meter (FTM) utility-scale projects. Global forecasts for the size of the grid-tied stationary energy storage market for residential, commercial and industrial, and utility-scale installations are also provided. 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 teams 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. Navigants 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, Navigants practitioners bring sharp insight that pinpoints opportunities and delivers powerful results. More information about Navigant can be found at navigant.com.

* The information contained in this press release concerning the report, Financing Advanced Batteries in Stationary Energy Storage, is a summary and reflects Navigant Researchs current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the reports conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.