The scaling of the energy storage market will rely on energy storage systems integration (ESSI) vendors and their market approach, according to a new report from Navigant Research.
ESSI players were rare three years ago, but today new entrants are populating the market. ESSI players include pure-play utility-scale players and distributed storage developers, but nearly all ESSI players bring their unique software and controls to the market.
Now that battery prices have responded to cost pressures – having fallen 40 percent to 60 percent in the past 18 months – ESSI vendors are under increased pressure to deliver more consistent pricing. This is particularly important in the utility and commercial storage segments, which are growing quickly but often require customization and lengthy interaction with the end user.
Certain vendors are differentiating themselves on technical capabilities, business models or financing offers. Navigant’s Leaderboard Report examines the strategy and execution of 12 leading energy storage systems integrators. The top 10 vendors include the following:
- AES Energy Storage
- NEC Energy Solutions
- RES Americas
- LG CNS
- Green Charge Networks
- Greensmith Energy Management Systems
- ZBB Energy
- S&C Electric
Navigant found that the future market for ESSI will be led by firms that are responsive to market demand, provide compelling offers within the marketplace and pursue scalable business models. In the past, ESSI firms have failed as a result of poor management or business strategy, even while their core technology offer was thoroughly demonstrated and provided added value. The most successful ESSI firms will be those with the technology, strategy and execution that permit both competitive pricing and compelling customer value propositions.