How will Energy Storage be deployed? While there’s a myriad of possible approaches to the deployment of energy storage, innovative business models are already emerging.
How will Energy Storage be deployed? While there's a myriad of possible approaches to the deployment of energy storage, innovative business models are already emerging. Being able to play into different value pools will be crucial in unlocking opportunities across the energy system, which creates the momentum for the energy storage market to grow significantly. In summary:
• Falling costs, growing renewable generation and an accelerating transformation of the energy system mean that the time for energy storage has arrived.
• There are many possible approaches to develop distributed energy storage and Delta-ee sees a number of deployment models evolving rapidly - with a number of examples illustrated in this Whitepaper.
• In Europe, self-consumption and frequency regulation are currently the primary value streams which most developers are focusing on. However, these are finite opportunities and other value pools - such as capacity or enhanced ancillary service markets - will become more important over coming years.
• Long term winners will have the ability to flex the business model and utilise storage in new ways.
• Delta-ee sees a role for both behind the meter and utility side of the meter storage. We see strong growth in European markets - but are cautious as to how quickly distributed energy storage will enter the mass market.
• Will Europe's big utilities miss out on the storage market in the way that they mostly missed out on the PV boom? Maybe. But we can see reasons why they should be able to succeed.
This Whitepaper draws upon some of Delta-ee's Energy Storage Research Service reports, providing selected extracts and highlights. The Service helps clients navigate the complexity and identify the deployment approaches & business models that are right for their business and markets.