Grid-tied microgrids driving demand for energy storage

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Energy storage opportunities will continue to grow over the next 10 years, along with the microgrid market, according to Navigant Research. This will be driven by diesel fuel prices, a greater push toward renewable resources in microgrids, and ancillary service market reforms — all of which underscore the business case for energy storage for microgrids.

Energy storage systems deliver resource optimization (fuel, PV, wind), resource integration (PV, wind), stability (frequency, voltage), and load management services to microgrids as well as the traditional grid. Delivering services to microgrids — and, in the case of grid-tied systems, to the centralized grid — energy storage is becoming an essential enabling technology for all types of microgrids, according to Navigant, and can reduce the payback period of the microgrid by enabling an increase in the penetration of renewable energy sources or by reducing diesel fuel consumption.

The strongest market for energy storage for microgrids will be the North American grid-tied customer-owned microgrid segment, which is supported by robust growth in microgrids and favorable regulatory developments, according to Navigant.

“Rapid expansion of the microgrid market over the next 10 years will drive increased demand for energy storage associated with these systems,” said Anissa Dehamna, senior research analyst with Navigant Research. “Energy storage systems can also allow participation in deregulated ancillary service markets, further improving the economics of the overall system.”

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