By 2025, 84 Percent of Projects in the Grid-Tied Stationary Battery Energy Storage Market Are Expected to Be Financed by Third Parties or Utilities, According to Navigant Research
To advance in this sector, energy project finance investors need
to understand the unique risks associated with battery energy storage
systems, report finds
A new report from Navigant
Research examines the issues, key risks, and technology requirements
surrounding the project financing instruments that are emerging in the
grid-tied stationary energy storage market for batteries.
Battery energy storage systems (BESSs) for grid-tied stationary
applications are now delivering customer and grid value in a more
financially predictable way. In turn, these more predictable revenue
flows to BESS projects are creating new energy storage financing asset
classes expected to speed the adoption of stationary energy storage
technology. Click
to tweet: According to a new report from @NavigantRSRCH,
by 2025, 84 percent of projects in grid-tied stationary battery energy
storage market are expected to be financed by third parties or utilities.
“Just as the advent of the solar power purchase agreement was a key
driver for the adoption of solar photovoltaics (PV), financing
innovation will be a key driver for the adoption of stationary battery
energy storage technology,” says William Tokash, senior research analyst
with Navigant Research. “Now that BESSs are delivering grid benefits in
ways that can be better defined financially, new financing asset classes
are emerging to support new projects.”
The evolution of project finance in the energy sector has been
instrumental in the development and construction of coal, combined cycle
natural gas, and renewable energy generation assets, according to the
report. For energy project finance investors to move into the grid-tied
stationary battery energy storage sector, the unique risks associated
with the operation of BESSs and potential revenue and operating costs
need to be understood and quantified.
The report, Financing
Advanced Batteries in Stationary Energy Storage, explores the types
of project financing instruments that are emerging in the grid-tied
stationary energy storage market for batteries. The study examines the
issues, including market drivers and challenges, key risks, and
technology requirements, related to battery energy storage project
financing. Navigant Research focuses on three battery energy storage
financing asset classes: behind-the-meter (BTM) host-controlled
projects, BTM utility-controlled projects, and front-of-the-meter (FTM)
utility-scale projects. Global forecasts for the size of the grid-tied
stationary energy storage market for residential, commercial and
industrial, and utility-scale installations are also provided. An
Executive Summary of the report is available for free download on the Navigant
Research website.
About Navigant Research
Navigant Research, the dedicated research arm of Navigant, provides
market research and benchmarking services for rapidly changing and often
highly regulated industries. In the energy sector, Navigant Research
focuses on in-depth analysis and reporting about global clean technology
markets. The team’s research methodology combines supply-side industry
analysis, end-user primary research and demand assessment, and deep
examination of technology trends to provide a comprehensive view of the
Energy Technologies, Utility Transformations, Transportation
Efficiencies, and Buildings Innovations sectors. Additional information
about Navigant Research can be found at www.navigantresearch.com.
About Navigant
Navigant Consulting, Inc. is a specialized, global professional services
firm that helps clients take control of their future. Navigant’s
professionals apply deep industry knowledge, substantive technical
expertise, and an enterprising approach to help clients build, manage
and/or protect their business interests. With a focus on markets and
clients facing transformational change and significant regulatory or
legal pressures, the Firm primarily serves clients in the healthcare,
energy and financial services industries. Across a range of advisory,
consulting, outsourcing, and technology/analytics services, Navigant’s
practitioners bring sharp insight that pinpoints opportunities and
delivers powerful results. More information about Navigant can be found
at navigant.com.
* The information contained in this press release concerning the
report, Financing Advanced Batteries in Stationary Energy Storage,
is a summary and reflects Navigant Research’s current expectations based
on market data and trend analysis. Market predictions and expectations
are inherently uncertain and actual results may differ materially from
those contained in this press release or the report. Please refer to the
full report for a complete understanding of the assumptions underlying
the report’s conclusions and the methodologies used to create the
report. Neither Navigant Research nor Navigant undertakes any obligation
to update any of the information contained in this press release or the
report.
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