Energy storage power station

Commercial and industrial energy storage: Fresh moves in a slow-moving market segment

Dec . 27, 2023 15:57 Back to list

Commercial and industrial energy storage: Fresh moves in a slow-moving market segment



A wave of activity has recently been observed in the commercial and industrial energy storage sector, indicating that industry players are recognizing the market potential in this traditionally underperforming segment. C&I energy storage systems are typically deployed behind-the-meter, providing businesses with factories, warehouses, offices, and other facilities the ability to manage their electricity costs and power quality. Additionally, these systems often enable businesses to increase their use of renewable energy sources.

 

While C&I energy storage systems can lead to significant reductions in energy costs by allowing users to "peak shave," or reduce the amount of expensive power drawn from the grid during peak demand periods, adoption has been slower than expected. The latest edition of the US Energy Storage Monitor revealed that only 26.6MW/56.2MWh of "non-residential" energy storage systems, which includes community, government, and other installations, were deployed in the third quarter of the previous year. In comparison, utility-scale energy storage reached 1,257MW/4,733MWh during the same period, while residential systems reached 161MW/400MWh. These figures clearly indicate that C&I energy storage uptake has been significantly lagging behind other market segments.

 

However, the non-residential sector, including C&I energy storage, is expected to experience growth in the coming years. In the United States, this growth will be supported by the Inflation Reduction Act's tax incentives for storage and renewables. Interestingly, there also appears to be interest in Europe for C&I energy storage deployment. The European market, with its emphasis on renewable energy and the transition to a low-carbon economy, offers great potential for the commercial and industrial sector to benefit from energy storage technologies.

 

The key driving factors behind the projected growth in C&I energy storage include the increasing need for businesses to manage their energy costs and the improvement in the performance and cost-efficiency of energy storage systems. As businesses rely on electricity for their operations, managing energy costs becomes crucial to remain competitive. Energy storage systems enable businesses to optimize their electricity usage by storing excess energy during off-peak periods and using it during peak demand, reducing their dependence on expensive grid power.

 

 

Furthermore, the increasing integration of renewable energy sources into the electricity grid presents an opportunity for C&I energy storage. By coupling energy storage systems with renewable energy sources like solar and wind, businesses can smooth out the intermittent nature of these sources and ensure a more reliable and continuous power supply. This integration of renewables and energy storage can help businesses achieve their sustainability goals by reducing their carbon footprint and reliance on fossil fuels.

 

In addition to the economic and environmental benefits, governments and policy initiatives are also playing a significant role in driving the adoption of C&I energy storage. The Inflation Reduction Act in the United States, for example, provides tax incentives that make energy storage more financially feasible for businesses. These incentives reduce the upfront costs of installing energy storage systems, making them more attractive and viable options for commercial and industrial users. Similarly, in Europe, various support schemes and regulations promote the deployment of renewable energy and energy storage, creating a conducive environment for C&I energy storage growth.

 

In conclusion, the recent surge of activity in the commercial and industrial energy storage sector indicates that industry players are recognizing the market potential in this previously underperforming segment. Although C&I energy storage uptake has been slower compared to other market segments, growth is expected in the coming years, driven by factors such as the need for businesses to manage energy costs, the increasing integration of renewable energy sources, and supportive government policies and incentives. As businesses continue to prioritize energy management and sustainability, C&I energy storage will play a crucial role in helping them optimize their electricity usage and achieve their economic and environmental goals.

 

 

Related products:

Self-Cooling-PW-164 Outdoor Distributed Energy Storage Cabinet- Power Type

 

Will be removed if infringing

Reference website:https://www.energy-storage.news/

 


Latest news

If you are interested in our products, you can choose to leave your information here, and we will be in touch with you shortly.


en_USEnglish