Navigant: Annual installed energy storage capacity for T&D deferral to near 15MW by 2026

Wednesday October 11, 2017 0 comments Tags: Boulder, Navigant Research, Alex Eller

BOULDER -- Global installed energy storage power capacity for transmission and distribution (T&D) deferral is expected to grow from 331.7 MW in 2017 to 14,324.8 MW in 2026, according to a new report from Navigant Research.NavigantNEWlogoUSE

The report analyzes the global market dynamics for energy storage systems (ESSs) that provide T&D deferral and asset optimization.

Historically, building new T&D infrastructure was the default solution to issues facing the electricity grid, including increased load growth or waning reliability.

Today, stationary energy storage technology can be used to defer upgrades for these types of issues -- and in a faster and less expensive manner. 

“The major advantage energy storage has compared to conventional T&D upgrades results from the flexibility related to how storage systems can be deployed and the variety of services they can provide,” said Alex Eller, Navigant research analyst.

“Unlike most grid infrastructure systems, ESSs can be deployed in small, modular increments as needed to serve growing demand with limited risk of oversizing or stranding assets.”

The report notes that these types of deployments are expected to increase in coming years as they bypass many of the typical challenges associated with large-scale transmission projects, including community concerns, timelines around project development and build, as well as uncertainty around future load growth and demand patterns.

As the cost of energy storage technology continues to decrease, these deployments are becoming an increasingly economical alternative to conventional T&D investments, Navigant said.

The reportEnergy Storage for Transmission and Distribution Deferral, examines the global trends and market dynamics for ESSs providing T&D deferral and asset optimization. The study includes an analysis of the advantages of energy storage over alternatives, along with the major drivers and barriers.

Global market forecasts for capacity and revenue, broken out by market segment (transmission asset optimization, distribution asset optimization, and behind-the-meter storage) and region, extend through 2026.

The report also examines the costs and benefits related to energy storage for T&D deferral, as well as notable case studies.

An Executive Summary of the report is available for free download on Navigant Research’s website.