GTM Research expects an increase to 848 MW in the annual energy storage market in 2019 — 13 times the size of the 2014 market and four times the size of the 2015 market, the firm said in its recent report.
Energy storage is set to experience drastic growth, according to a quarterly report released by GTM Research and the Energy Storage Association.
GTM Research predicts the U.S. energy storage market will increase four times by 2019, resulting in an annual market of 848 megawatts. And the growth is expected to start now, the energy research group said.
“2015 will see particularly rapid growth, with 220 MW deployed and each segment more than doubling on an annual basis, with further upside in the non-residential segment,” GTM said in the report.
Several factors have been and will continue to drive growth in energy storage, including the Tesla Powerwall, one of the most buzzed-out energy developments this year. Tesla launched the stationary storage product line for residential and small commercial uses in April, as well as a utility-scale storage solution called Powerpack. The announcement puts tremendous price pressure on storage technology, particularly lithium-ion batteries, GTM said, but it isn’t expected to cause price reductions immediately.
Additionally, the battery storage sector has policy and market developments that have helped drive growth, too, GTM said.
Front-of-the-meter policies and market developments have been put in place or occurred in New York, Maryland, Texas, Hawaii, Arizona, California, Oregon and Washington, according to the report. Perhaps most notable is California’s storage mandate that has required utilities to request storage proposals from vendors.
GTM Research also noted behind-the-meter policies that have driven energy storage growth, as well. In New Jersey, for example, the Board of Public Utilities has awarded $2.9 million to 13 storage projects that total nearly 9 MW to pair with renewable energy projects.