3Q 2022

Analyst Insight: Behind-the-Meter Energy Storage Market Update

Energy Storage Forecast Database Insights

Energy storage is fundamental to creating a smarter, more flexible energy system. By storing and discharging energy when it is required, storage technologies can maximize the use of intermittent and distributed renewable generation. Behind-the-Meter (BTM) storage is a significant component of energy storage where customer-sited stationary storage systems are connected to the distribution system on the customer’s side of the utility’s service meter. BTM battery energy storage systems (BESS), along with distributed generation (DG) and other grid assets deployed at the distribution level, are broadly referred to as distributed energy resources (DER), which are also highly flexible. They provide essential balancing services, improving system stability and mitigating network constraints by relieving congestion on the grid. This immense flexibility is valuable for investors, utilities, grid operators, and end users, and makes storage technologies a natural complement to other rapidly growing renewable energy assets, such as solar and wind.

Dramatic cost declines, increasing manufacturing capacity, and market and regulatory reforms have combined in recent years to form a thriving energy storage market. These factors are responsible for the considerable growth in both distributed and utility-scale settings. Guidehouse Insights expects the storage market to grow steadily through 2031, as governments around the world strive to retire gas peaker plants in favor of less carbon-intensive methods, and Europe looks to reduce reliance on natural gas imports amid geopolitical concerns.

This Guidehouse Insights report highlights BTM energy storage trends in 2022. These include market inflection trends, market drivers and barriers, market forecasts regarding capacity, revenue, and customer segments, the Inflation Reduction Act (IRA) in the US market, the impacts of the ongoing war in the Ukraine, BTM storage in the EV Market, and conclusions for industry stakeholders.

Pages 15
Tables | Charts | Figures 8
  • Which regions have the most energy storage capacity and units in 2022?
  • What are the market drivers and barriers to technology deployment?
  • What effect will the IRA have on the BTM battery storage market?
  • How will US BTM energy storage growth impact the US PEV market?
  • What are the regional trends in energy storage deployment?
  • Energy storage vendors
  • Battery vendors and manufacturers
  • EV manufacturers
  • Policymakers
  • Utilities 
  • Federal and State regulators
  • Energy engineering, procurement, and construction firms
  • Investor community

Introduction

Scope

Executive Summary

Market Inflection Trends

Market Drivers and Barriers

Market Forecast: DER Capacity and Revenue

Market Forecast: DER Customer Segment Trends

Inflation Reduction Act and the BTM BESS Market

The War in the Ukraine and the BTM BESS Market, BTM Storage and the PEV Market

Conclusions, Acronyms & Abbreviations, Additional Resources, Contact

  • Annual Total Distributed Energy Storage Capacity by Region: World Markets 2022-2031
  • Total Distributed Energy Storage Revenues by Region: World Markets 2022-2031
  • Annual Installed DESS Market Share by Customer Segment: World Markets 2022
  • Annual Installed DESS Market Share by Customer Segment: World Markets 2031
  • LD PEV Population and Market Share of the LDV Market, US: 2021-2030
  • Behind-the-Meter Energy Storage: Industry Growth Potential, World Markets 2022-2031
  • Market Drivers and Barriers
  • Market Inflection Trends

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