Dec. 5, 2011: Market for Energy Storage in Commercial Buildings Poised for Significant Growth
According to a report from Pike Research, the market for energy storage in commercial buildings is poised for significant growth in the years ahead. In 2016, the firm forecasts, total revenue from energy storage systems will reach at least $4.9 billion. Under a more aggressive, high-growth scenario, total energy storage revenue for commercial buildings could reach $6.7 billion.
“Energy storage gives a building owner the means to buy energy when it is less valuable and use it when it is more valuable,” said research analyst Eric Bloom. “The ability to manage operating expenses in the face of aggressive demand charges and dynamic pricing schemes, which are on the rise throughout North America, presents a compelling opportunity for building owners and managers.”
Today the main energy storage applications in commercial buildings are backup power and time shifting using thermal energy storage (TES). While these will continue to lead the market in the foreseeable future, significant opportunity also exists for commercial buildings to utilize flow batteries and lithium ion (Li-ion) batteries for energy storage as the economics of those technologies continue to improve. Pike Research says the total potential value of various benefits to building occupants of energy storage — in terms of reliability of electricity, power quality, firming the capacity of renewables, and so on — could reach the $150 billion range over the next decade, although the actual value of the market will likely be smaller than the potential.
Publication date: 12/05/2011