Energy research firm Guidehouse Insights has named five companies as the leading players in the utility-scale energy storage systems integration market.
Fluence, Tesla, RES, Powin Energy and Nidec ASI topped the Guidehouse Leaderboard Report. The researchers examined the strategies and execution of 13 companies in the market.
Utility-scale energy storage systems integration is expected to exceed $188 billion in deployment revenue by the end of this decade, according to Guidehouse Insights. The increasing development of wind and solar generation, intermittent resources which will need a grid balancing resource such as large-scale batteries or quick-start gas-fired generation, should drive the market growth.
Fluence and Guidehouse will be panelists in a Feb. 25 webinar on energy storage applications hosted by Smart Energy International. Register here!
Fluence, which is a joint venture of AES’ energy storage business and Siemens started several years ago, is considered No. 1 in the sector, while Tesla, RES, Powin Energy, and Nidec round out the top five in that order. The remaining top utility-scale energy storage integrators include divisions of Con Edison, Wärtsilä, NextEra Energy Resources, LG and General Electric.
“These companies are actively pushing the boundaries of how energy storage is viewed by stakeholders in the industry, and they are working to open new markets,” says Ricardo F. Rodriguez, research analyst with Guidehouse Insights. “The industry remains highly competitive, with companies offering similar products and services, and behind the leaders are several other companies well-positioned to capitalize on new markets and project opportunities.”
According to the report, in the past three years these companies have shifted their focus from turnkey project development to a more pure-play systems integrator and operator role. Although many leaders still offer turnkey project development as it might be preferred by some customers, the overall market is trending toward specialized systems integrators being hired by project developers.
Some companies are moving into the energy as a service role offering microgrids which include battery storage components for specialized customers such as military bases, hospitals and data centers. Schneider Electric paired with investment firm Carlyle Group on one such effort, while Siemens and MacQuarie created their own joint venture in energy as a service opportunities.
Energy as a service is a sector in which the developer pays for all upfront costs to build and deploy the microgrid-storage system, while the customer pays out over a long-term purchase agreement.