Renewable generation deployments (primarily solar photovoltaic and wind farms) have grown substantially over the last decade and are forecast to continue growing well into the future. That’s thanks to lower costs and technological improvements leading to increased power output.
Indeed, the International Energy Association expects that average annual global renewable installations will be 80 percent higher than coal, oil and natural gas combined between 2017 and 2040. Separately, Navigant Research anticipates that wind and solar PV installations — both in front of and behind the meter — will surpass 1,500 gigawatts cumulatively between 2017 and 2026.
This is good news in terms of sustainability and greenhouse gas reduction activities. However, this massive influx of variable generation capacity can present issues for outdated electrical grids around the globe. Energy storage that supports renewables integration can help solve these issues by maintaining smooth, consistent power flow to the grid. As a result, renewable installations combined with energy storage are expected to make significant waves in the energy market well into the future.
Deployments of this nature can be divided into two large segments. The first category includes utility-scale solar PV and wind power plants (typically larger than 1 megawatt in capacity) combined with energy storage and capable of servicing entire communities. The second category includes behind-the-meter solar PV installations combined with energy storage that generally service individual commercial or residential buildings and are usually less than 1 MW in size.
Renewable, utility-scale power plants tied with energy storage will be a major force in the global energy market — but it is the behind-the-meter installations combining renewables with storage that will lead the way around the world over the next decade.
Consider these forecasts. Annual revenue for energy storage tied to utility-scale wind and solar is expected to reach $9.6 billion by 2026. Revenue for behind-the-meter installations, however, is expected to surpass $13 billion in the same timeframe.
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