Growth of energy storage requires "sea change" of regulationsThe future growth of electrical energy storage (EES) systems and thermal energy storage (TES) systems, part of the energy storage market in commercial buildings, is waiting for the regulatory tide to change. The market for energy storage in commercial buildings includes one mature segment -- energy storage systems for uninterruptible power supply (UPS) systems -- as well as two relatively nascent segments: EES systems and TES systems. "The future growth of TES and EES systems is primarily reliant on expectations of regulatory changes," said Pike Senior Research Analyst Sam Jaffe. "If there is a sea-change in global electricity regulation that enables customers to realize the value of energy storage, then the market is likely to expand rapidly." In certain cities and regions where local utilities and governments allow building owners to monetize the value stream of peak shifting, these technologies are likely to spread rapidly, Pike Research reports. "We expect that some utility regions will alter regulations while others will not, leading to localized hotspots of growth surrounded by deserts of inaction," Jaffe said. System cost will also affect the growth of commercial energy storage. Cost reductions could be reached with a greater demand for batteries in the transportation market, as well as reductions in the prices of other parts that go into the balance of the system, such as battery management systems and two-way power inverters, according to Pike. For more:
|