Global markets boasted 51,000MW of wind and solar photovoltaic (PV) power generation capacity installed in 2012, and while some variable generation markets may slow or stall, there is no doubt that wind and solar markets will continue to expand over the next ten years. That growth will require grid operators to adapt to unprecedented levels of variable generation on their systems – in part through the increased use of energy storage systems (ESSs). According to a recent report from Navigant Research, the worldwide market for ESSs for wind and solar power integration will grow from less than US$150 million annually in 2013 to US$10.3 billion by 2023.
"Although market and industry issues have restrained growth to date, energy storage for wind and solar offers a compelling business case," said Anissa Dehamna, senior research analyst with Navigant Research. "This is especially true at the residential level, where electricity rates are typically more expensive on a per kilowatt-hour basis than in commercial and industrial settings."
ESSs are one of several technologies that can be used to integrate variable generation. Demand response (DR) and natural gas are two primary alternatives, and both offer their own advantages: DR requires much less capital investment than ESSs, according to the report, and natural gas is well understood and presents relatively little technology risk. However, ESSs have the advantage of more technical flexibility than either DR or natural gas, added Navigant Research.
