Navigant Research Report Finds Storage Plus Renewables Power Purchase Agreement Prices Are Expected to Fall as Adoption Expands

A new report from Navigant Research tracks the North American market for utility-scale storage plus renewables (storage-plus) adoption and power purchase agreement (PPA) prices.

The utility-scale energy storage market has grown steadily since 2011 as the technology risk and cost associated with energy storage systems decreased rapidly. Today, energy storage is being developed in tandem with renewable resources at prices that compete with combined cycle gas plants. 

“In 2018, storage-plus made its first shift from the validation and first-mover adopters to diffuse adoption led by utilities,” says Alex Eller, senior research analyst with Navigant Research. “The accurate valuing and positioning of storage-plus by utilities will continue to drive the market in coming years as storage-plus PPAs are already competitive with the levelized cost of energy for combined cycle natural gas in parts of the US.”

According to the report, regulators and utilities must push for all-resource solicitations to take advantage of this price disruption and meet aggressive renewable portfolio standard targets in the process. Utilities must invest in sophisticated modeling tools to measure the value of storage-plus to the grid. In parallel, regulators should continue to foster supportive environments for utilities to innovate, such as valuing non-economic benefits of storage-plus, such as water intensity.

The report, How Utilities Can Look Beyond Natural Gas with Cost-Effective Solar Plus Storage Strategies, tracks the North American market for utility-scale storage-plus adoption and PPA prices. The study provides recommendations for utilities and regulators globally to take advantage of storage-plus plants to meet flexibility, reliability, and renewables targets using all-resource solicitations. The report provides estimates of market trends into 2021. It also examines a variety of market trends and use cases around the globe. 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 clean, intelligent, mobile, and distributed energy. Additional information about Navigant Research can be found at www.navigantresearch.com.

Comments (0)

This post does not have any comments. Be the first to leave a comment below.


Post A Comment

You must be logged in before you can post a comment. Login now.

Featured Product

OMNISTAR GAS ANALYZER - Fast accurate analysis from % to sub-ppm in a compact, turnkey benchtop system.

OMNISTAR GAS ANALYZER - Fast accurate analysis from % to sub-ppm in a compact, turnkey benchtop system.

The Pfeiffer Vacuum OmniStar benchtop analysis system offers you a compact footprint, powerful software and Ethernet connectivity. It's the optimum solution for many real-time gas analysis applications. With the OmniStar, Pfeiffer Vacuum offers you a complete solution for gas analysis, in chemical processes, semiconductor industry, metallurgy, fermentation, catalysis, laser technology and environmental analysis. The turnkey OmniStar gas analysis system consists of heated, temperature-regulated gas inlet system, Quadrupole mass spectrometer, a dry diaphragm vacuum pump and HiPace turbopump. Unlike competing methods such as FTIR, OmniStar is suitable for qualitative and quantitative analysis of most gases.