Editor's note: recently, according to the report of distributed energy storage survey, the global installed capacity of distributed energy storage is expected to reach 19.878GW by 2028.
Navigant Research has predicted that the global distributed energy storage market is expected to achieve huge growth in the next nine years, foreign media reported.The company's analysts offered an optimistic forecast.
The study shows that with the decrease of the cost of photovoltaic power generation system and energy storage system, diversified business models and breakthroughs in energy storage technology, the global distributed energy storage market will achieve a nearly 20-fold growth by 2028, and the final installed capacity will reach 19878MW.
Navigant says lower energy storage costs and new business cases will eventually lead to more countries and regions deploying small-scale energy storage systems.
Energy storage deployments in Germany, Japan, China, the us and the UK will account for 78 per cent of the global energy storage market this year, thanks to the right business environment, incentives, rates and the proliferation of distributed energy storage companies.Italy, Australia, India, France and South Korea were in the top 10.
Energy storage system plays an important role in the utility industry
Navigant analysts say enabling owners of small energy storage systems to realize value and willingness from their investments is critical.The deployment of energy storage systems is being driven by technological breakthroughs including blockchain, artificial intelligence and aggregation of systems that provide grid balancing services.
In California, for example, investment tax credits, lower prices for photovoltaic modules and lithium-ion batteries, and an overhaul of the self-generating incentive program (SGIP) have made energy storage deployments cheaper than ever before.Utility manufacturers Pacific gas and electric co., southern California Edison, SoCalGas, and San Diego gas and electric co. 's customers deploy battery storage systems that qualify for a self-generating incentive plan (SGIP) discount.The initiative incentive plan (SGIP) is a cash incentive for power users to build their own power generation facilities on the power side to encourage new energy and green technologies.
Navigant analysts say utilities will provide incentives to customers as they begin large-scale deployment of small battery energy storage systems to reduce congestion and peak capacity demand on the grid, and expect such measures to be a major driver of energy storage system deployment.
In Japan, home users deploying energy storage systems can maximize the return on investment as the on-grid tariff (FIT) paid by pv system owners decreases and net metering payments decrease.In 2009, about 500, 000 households in Japan started installing photovoltaic systems, with a 10-year on-grid tariff of 48 yen per kilowatt-hour ($0.44).Deployment requirements for residential energy storage systems are increasing as the first FIT payment agreements expire.
In demand and time-based markets, autonomous electric incentive plans (SGIP) are the primary driver for deploying small-scale energy storage systems.
The global distributed energy storage installed capacity is expected to reach 19.878GW by 2028