World-Gen Nov/Dec 2018

WORLD-GENERATION NOVEMBER/DECEMBER 2018 23 PERSPECTIVE BATTERY STORAGE MARKET CONTINUED FROM PAGE 8 emerging that pair storage with convention- al gas turbine generation to deliver a more rapid response, milder ramp rates, fewer starts and stops and emissions reductions.” SHORING UP RESILIENCY AND POWER QUALITY Here’s another trend supporting the growth of storage systems: the growth of microgrid deployments. Several factors con- tribute to this. Among them, you’ll find reduced costs. Peter Asmus, a Navigant Research analyst who has been tracking microgrids for nine years, recently told the Microgrid Knowledge news site that, “over- all costs for microgrids have declined by 25-30 percent since 2014.” These declines, he said, were “focused on solar, wind and battery storage technologies.” In addition, microgrids have become a component of resiliency planning in several states, including New York and New Jersey, after they kept lights burning in a few sites surrounded by blackouts during Hurricane Sandy in 2012. Not surprisingly, 62 percent of utility staffers who responded to Black & Veatch’s 2018 Strategic Directions: Electric Report survey either have built a microgrid, are developing a microgrid or have included microgrids on their technology roadmap. Asked what they felt were major bene- fits of microgrids, 56 percent of survey respondents picked “improved reliability and resiliency for critical customers,” while 53 percent picked “Improved reliability and resilience for a group of customers (e.g., a feeder or substation).” Integrated distribut- ed generation also was a winner; 39 percent of respondents cited it as a benefit. RIDING REGULATORY WAVES Joining renewables and microgrid growth as drivers of the storage market, a number of regulatory factors contribute to potential growth. In California, a new building code requires that homes constructed after 2019 have built-in solar power. This power can come from installations on individual homes or shared systems for a collection of homes. “Once all the homes in a newly constructed subdivision or neighborhood are equipped with solar, it makes sense to add microgrid storage that would deliver backup power in case of an outage,” wrote Jason Abiecunas and Wes Denton in a chapter of the 2018 Strategic Directions: Electric Report. Abiecunas and Denton also point to the Federal Energy Regulatory Commission (FERC) Orders 841 and 845 issued earlier this year. These remove barriers preventing energy storage technologies to enter U.S. power markets. The new rules are designed to “enhance competition and promote great- er efficiency in the nation’s wholesale elec- tric markets and will help support the resil- ience on the bulk power system,” according to FERC. As Abiecunas and Denton note, “Observers say the new rules will open the floodgates for energy storage companies to compete in wholesale power markets. One research report predicts that energy stor- age will become competitive with gas-fired peakers in five to 10 years. In certain appli- cations, such as ancillary services or peak shaving, energy storage is competitive with fossil-fueled alternatives now. The FERC decision is expected to spur innovation that should translate into further price declines.” Given these conditions, the Energy Storage Monitor research team now expects the U.S. storage market to reach $541 in 2018 and cross the billion-dollar mark in 2019. “Surging deployments will result in a jump in total market size, with the market more than doubling between 2018 and 2019 and then doubling again between 2019 and 2020. The market size will reach $4.6 billion by 2023,” the Q3 Storage Monitor report says. Clearly, storage isn’t an emerging tech- nology anymore. Today, energy storage is proven and ready for business. The Black & Veatch 2018 Strategic Directions: Electric Report is part of a larg- er, ongoing research initiative in which Black & Veatch regularly surveys industry participants and analyzes responses in a report that consists of multiple chapters covering various topics. Black & Veatch’s 2018 Strategic Directions: Electric Report explores the progress made by the electric utility industry as it adapts to the changing power-sector landscape. ABOUTTHE AUTHOR John Chevrette has more than 20 years of industry consulting experience and has worked with domestic and international cli- ents in the electric utility, energy technolo- gy, gas pipeline, telecommunications and water industries. global corporate procurement, signaling an important commitment from the private sector.    Wide-scale integration of renewable energy sources is no longer a question of if, but when: Countries such as China, the United States, and Germany have already reached price parity for certain renewable sources. With prices continuing to drop, developed countries and emerging markets alike have the ability to integrate renew- ables into their grid systems to ensure com- petitive advantage.  ABOUT DELOITTE Deloitte provides industry-leading audit, consulting, tax and advisory services to many of the world’s most admired brands, including more than 85 percent of the Fortune 500 and more than 6,000 pri- vate and middle market companies. Our people work across more than 20 industry sectors to make an impact that matters — delivering measurable and lasting results that help reinforce public trust in our capital markets, inspire clients to see challenges as opportunities to transform and thrive, and help lead the way toward a stronger econo- my and a healthy society. GLOBAL RENEWABLETRENDS CONTINUED FROM PAGE 10