North America, Western Europe & Asia Pacific Accounted for 74% of Global Distributed Energy Storage
A new report from Navigant Research provides an update on the market drivers, challenges, key trends, and growth projections for the global distributed energy storage system (DESS) industry, including battery energy storage systems, thermal energy storage systems, and remote microgrids.
The distributed energy storage industry has seen significant growth during the past five years due to several key factors. DESSs are inherently flexible, can be deployed rapidly, have the potential to provide multiple grid and customer benefits, and can generate multiple value streams. In addition, breakthroughs in adjacent digital technologies, including artificial intelligence, blockchain, and predictive analytics, are facilitating the emergence of DESSs as a key enabling technology for aggregated distributed energy resources (DER) solutions that are propelling DESS projects toward economic viability and improved bankability.
According to the report, in 2019, North America, Western Europe, and Asia Pacific were expected to account for approximately 74.4% of the global DESS market.
“Much of the early success in these regions is the result of financial incentives and government support for energy storage and other DER,” says Ricardo F. Rodriguez, research analyst with Navigant Research. “Incentives and subsidies in each of these three markets, paired with support from utilities, have made DESSs an economical investment for many customers.”
According to the report, utilities around the world are recognizing the benefits of DESSs and launching programs to deploy DESSs on their electrical systems. Utility involvement, cost declines, government incentives, and increased solar PV integration are currently the primary growth drivers responsible for increased DESS deployments.