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The installed capacity of energy storage systems (ESS) for solar and wind power integration will total 21.8 GW from 2013 to 2023, finds a new report from Navigant Research.

More than 1,300 GW of wind and solar power generation capacity is expected to come online in the next 10 years, creating an unprecedented amount of instability on the grid - particularly in key markets within North America, Western Europe and Asia Pacific. As grid operators adapt to increasing levels of variable generation on their systems, Navigant Consulting predicts energy storage systems will become an integral element of their overall strategies.

“Several of the major markets for renewables, including Germany, Japan and the United States, have enacted rules or legislation encouraging the adoption of energy storage systems for the purpose of integrating variable energy sources onto the grid,” says Anissa Dehamna, senior research analyst with Navigant Research. “These market incentives come in various forms, including outright subsidies for ESS adoption, reforms that change how variable generation is compensated, and adjustments to connection requirements for variable power plants.”

In particular, the report says changes to the compensation arrangements for variable power generation will have significant influence on the market for ESS for solar and wind. Compensation mechanisms have changed drastically over the past 10 years, according to the report, and many compensation schemes have grandfather clauses -meaning that older wind and solar systems have much different compensation rates and structures than newer systems coming online.





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