Distributed Energy Storage 2014: Applications and Opportunities for Commercial Energy

Because electricity supply must match demand on a second-by-second basis, ensuring that demand is met requires costly planning and investments from grid operators throughout the energy supply chain, as well as critical ancillary services which ensure the stability of the electrical grid. While deregulation introduced competition to the generation portion of the electricity supply chain in some states, distribution of electricity has remained a regulated monopoly. However, the proliferation of intermittent, renewable generating sources (such as solar PV) over the last several years has presented utilities, grid operators, and project developers with a new set of challenges and opportunities - many of which can be addressed through the deployment of distributed energy storage.

Historically, regulators at both the state and federal level have struggled to fully recognize and quantify the value of the services provided by energy storage since storage can provide bidirectional system level benefits irrespective of geographic location. While there are more than 20 discrete value streams for storage, depending on the point at which it is interconnected, the greatest potential opportunity for layering of these values streams tends to be for systems interconnected closest to customer load.

FIGURE: Changes in the Frequency Regulation Market in PJM Post-FERC 755

Source: GTM Research, PJM

This comprehensive new report explores distributed energy storage as a new paradigm of electricity supply, delving into the market drivers and barriers, storage incentives and regulations, and wholesale market opportunities. It also provides a forecast and details future opportunities in the distributed energy storage market and sub markets.

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GTM Research

GTM Research, a division of Greentech Media, provides critical and timely market analysis in the form of research reports, data services, advisory services and strategic consulting. GTM Research’s analysis also underpins Greentech Media’s webinars and live events. Our coverage spans the clean energy industry including the solar power, smart grid, energy storage, energy efficiency and wind power sectors. Our analyst team combines diverse backgrounds in investment banking, engineering, information technology, strategic consulting and regulatory sectors. Our analysts are widely known across the industry and speak regularly at industry events all over the world. GTM Research is based in Boston with offices in New York and San Francisco.

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