According to a recent report from Pike Research, a part of Navigant’s Energy Practice, the market for energy storage on the grid, starting from a very low base in 2012, will surpass $30 billion in annual value by 2022.
The study concludes that the total capacity of ESG systems worldwide will reach almost 56,000 megawatts by 2022.
Advances in next-generation pumped storage, compressed air energy storage, and advanced batteries have multiplied the technology options available for energy storage on the grid (ESG), and at the same time, the applications for ESG are also increasing.
Rapidly changing energy mixes and increasingly volatile load profiles will challenge grid operators to deliver reliable and secure electricity, encouraging demand for ESG over the next decade.
According to the report, a key business model shift in the ESG market is increasing specialization. Specifically, a significant number of recent strategic decisions and partnerships reflect a narrower market focus on the part of technology vendors.
Instead of targeting many different markets and countries, more and more vendors are targeting their sales efforts on one or two markets or applications, and are repositioning themselves in the energy storage supply chain.