Growing The Battery Storage Market 2018 Exploring Four Key issues

FromtheProducersoftheEnergyStorageWorldForumAuthors:PaulRobsonandDavideBonomiDUFRESNE–ENERGYSTORAGEWORLDFORUM

JANUARY2018

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Contents

Whatdevelopmentsareneededtogrowthebatterystoragemarketgoingforward?.........................2

Issue1:Increasing“bankability”andtrustfromtraditionalfinanciers..................................................3

Issue2:Improvingbatterystorageeconomics:improvingrevenuecertaintyandachievingcostreductions..............................................................................................................................................8

Issue3:Unlockingnewgeographicmarketsforstorage......................................................................14

Issue4:Developingnewcommercialandindustrialapplications........................................................17

Summary..............................................................................................................................................20

Thiswhitepaperissponsoredbythe12thEnergyStorageWorldForumandthe6thResidentialEnergyStorageForum,whichwillbothtakeplaceinRomefrom14th–18thOctober2019.BePartOfTheEnergyStorageDiscussioninRome-http://www.energystorageforum.com/

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What Developments Are Needed To Grow The Battery Storage Market Going Forward? Batterystoragehasgrownsignificantlyoverthelastfewyears.Electrochemicalstorageisnowpushingthe1GWmarkupfromafewhundredmegawatt justafewyearsback.1Keyregions,such as Europe, South Korea and the US, are leading growth. Massive investmentspredominantly in lithium-ion batteries are driving down costs while project developers arecontinuously getting better at designing and building customised storage systems. Thesedevelopmentsarebeingdrivenbymore favourablemarketsandregulation, improvingsystemcosts,increasedaccesstofinanceandaneedtoupgradeageinggridinfrastructure.Atthesametime,batterystorageisstillonlyasmallpartofthetotalpowermarketandthereissubstantialroomforfurtherdeployment.Navigantexpectsatotalinstalledgrid-scalebatterycapacityof14GW by 2023. This number is staggering as it does not include projections for residential orcommercialandindustrial(C&I)bothofwhichhavesizablemarketpotentials.Thiswhitepapertakesa lookat fourof thekey issues still tobeaddressed if the battery storage market is toreach its projected potential in the 2020s. TheissueswereidentifiedbydelegatesoftheEnergyStorage World Forum 2017(http://energystorageforum.com) in Berlin andrepresent a peek in to the top issues on thebattery storage agenda going forward. In turntheseinclude:

1. Continuing to build trust from traditional lenders and increasing the bankability ofstorage projects. A key focus here is increasing the length of warranties, developingappropriate codes, standards and regulations (CSR) and the role EPCs can play byprovidingintegratedsolutionsand‘fullywrapped’warranties.

2. Opening up markets to energy storage, increasing revenue certainty and reducingcost.Energystoragecanofferanumberofapplicationstothepowersystem.Marketsandregulations thereforeneedtoopenuptostoragewhile the industrycontinues itsfocusoncostreductions.

3. Unlockingnewgeographicmarkets forbatterystorage.The largemajorityofbatteryprojects are found in a handful of countries. Overcoming barriers to deployment inthesemarkets,suchasa lackofaccess to finance,canpavetheway formarketswithvastdeploymentpotential.

4. DevelopingtheC&Imarketsegment. TheC&Imarketsegment isonly recentlybeingexplored by project developers and constitutes a significant growth opportunity. Keyfactors such as increasing energy bills and price volatility could drive market growthgoingforward.DevelopinghybridstoragesystemswiththeabilitytorespondtoawidevarietyofneedsisalsoakeyforunlockingfutureC&Igrowth.

“Thisreporttakesalookatafewofthekeyissuesstilltobeaddressedifthebatterystoragemarketistoreachitsprojectedpotentialinthe2020s.”

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Issue 1: Increasing “Bankability” And Trust From Traditional Financiers While batteries are consideredmore bankable now than in theindustry’s early years, there is stillwork tobedonetoattract lowcostcapital from the financingcommunity in particular forresidential but also for grid-scaleprojects.“Bankability”referstohowcredible a storage project’s overalleconomic viability is considered bytraditional lenders. Unproventechnologies are often funded byinvestors willing to accept higherlevels of perceived risk for a higherreturn. Once lenders haveconfidence in the technology to deliver apredictedrevenuestream,thattechnologycanaccessalargerpoolofcapitalintheformofdebtandequity.Tothisendaprojectgenerallyhastoundergoarigorous independentassessmentincluding detailed analysis of the economics as well as of the project’s technology,manufacturing,engineeringandconstructionaspects.

Whilethereareanumberofconsiderationsthatgointothetechnologyassessment,thelengthofwarranties,maturityofthesupplychain,productsupportinfrastructureandtheexistenceofcodes,standardsandregulationsareessential.Theeconomicassessmentgenerallyfocusesonestimatedcostsand revenuesand towhatdegree real-life financialperformancecanperformonpar,orabove,withfinancialmodels.Asanexample,the‘Jake’and‘Elwood’batterystorageprojects in Chicago were the first debt and equity financed utility scale projects in NorthAmericafundedin2015.ThiswasaccomplishedthrougharobustwarrantyprovidedbyasingleOEM while certainty on the project finances was secured through a hedge on frequencyregulationprices.

Manufacturing And Engineering: Guaranteeing Performance And Ensuring Reliability In The Storage Asset

Warranties Howdowarrantiesaffectbankability?Thelongeramanufacturercanguaranteetheoperationand reliability of a battery system the less risky it will seem to lenders. Different types ofwarrantyareproductwarrantye.g. a guarantee that the storageasset shouldoperate freeofany defects for a certain number of years and performancewarranty e.g. a guarantee of acertain capacity and availability over the lifetime of the system. Extended warranty optionsguaranteeingupto10yearsiscommonintoday’smarketalthoughthespecificsofthewarrantycan differ and certain parts (e.g. inverters, transformers and switchgears) can be covered for

F I G U RE 1 : EN SUR I NG ST O RA G E

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moreorlesstime.Ingeneral,projectdevelopersseektobeprotectedatleastforthedurationof the contract term it has negotiated with a counter party. For residential systems somevendors currently offer up to 15-year warranties although the average warranty period isaround7years.2

The Role Of Vendors And EPCs In Guaranteeing ‘Fully Wrapped’ Warranties Vendors and engineering, procurement and construction (EPCs) companies can play animportantroleinensuringbankabilitybyprovidingone-stopshopsolutionsforlenders.Duetothecomplexityofstorageprojects,havingoneprovidertomanagethesourcingandintegrationof systemcomponentscan reducecostsandavoidoverlapsorgaps in theconstructionphasehence invoking confidence in the lender. These warranties are so-called ‘fully wrappedwarranties’ in which the developers guarantee a single warranty on an entire project. Forexample,afullywrappedwarrantywasconsideredakeyingredientforthesuccessfulfinancingof Renewable Energy Systems’ (RES) 300 kW battery system provided to Western PowerDistribution in the UK in 2015. This approach is becoming increasingly common in today’smarketasdevelopersnowhaveenoughdataandexperiencewithLi-ionprojectstodoso.ThereareanumberofadditionalwaysvendorsandEPCscanincreasebankability.TimMueller,Chief Technology Officer at Belektric, said his company protects lenders against low storagesystemperformancebyusing triedand tested inverters fromtheirestablishedPVbusinessaswellasdesigningandmanufacturingcontainersforthestoragesystemthemselveshencerelyingonaclosedqualitycontrolsystem.3TheyarealsoworkingwithafewlargeestablishedbatterysupplierssuchasSamsung,whicharenowabletoprovideperformancewarrantiesofupto20years on their Li-ion cells – well above the industry standard of 10 years. In general, EPCcompaniesworkwith qualified suppliers of lead acid and Li-ionbatteries,whichhave amoreestablishedtrackrecord(seeFigure2).

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Codes, Standards And Regulations (CSR) Exist For Standard Chemistries But Must Be Developed For Novel Battery Types In their entirety CSR covers the rules and regulations that govern the design, construction,installation, commissioningandoperationof storagesystems.Froman investorpointofview,

Figure2:NewBatteryChemistriesAreFacingAToughRouteToMarket

Themajorityofnewgrid-scalebatteriesonthemarkettodayarelithium-ion(Li-ion).However,anumberofotherbatterychemistriescouldprovideadditionalbenefitssuchasincreaseddurabilityorhigherenergycapacityforlonger-termstorageorotherspecificapplications.Theseincludeamongstotherssodium,lead-acidandflowbatteries.Whatdistinguishesthedifferentchemistriesiswhatmaterialisusedfortheanode(negativeelectrodewhereelectronsaregenerated),cathode(positiveelectrodewhereelectronsreturntothebatteryafterdoingworkexternally)andtheelectrolyte(ionicsubstancethatseparatestheanodefromthecathode).Flowbatteriesstoretheelectrolytesseparatelyfromtheelectrodesandstoragecapacitycanbeincreasedbyaddingstoragetankswithoutnegativelyaffectingpowerrating.Thefollowingtablesummarisesafewofthekeybenefitsandchallengesofeachchemistry.

Type Maturity Efficiency Benefits ChallengesLeadacid Deployed 50-90% - Established

- Inexpensive- Lowenergyandpowerdensity- Depthofdischarge

Li-ion Deployedanddemonstration

75-90% - Goodenergyandpowerdensity

- Cyclelifeconstraints- Safetyconcerns

Sodium Deployed,continuedR&D

85-90% - Goodenergydensity

- Hightemperaturerequired- Limitedpower

Flowbattery Demonstration,continuedR&D

60-80% - Decoupledpowerandenergy- Improvedcyclelife

- Lowenergydensity

Despitethepotentialbenefits,mostprojectdeveloperscurrentlyhavemoreexperiencewithLi-ionandleadacidandassuchthewarrantiesofferedarealsomorecomprehensive.Awaynewchemistrydeveloperscanmitigateriskisbyoutsourcingkeysupplycapabilitiestolargerestablishedcompaniesthatcandeliversparepartsandmakegoodonwarrantiesifthenascentcompanygoesbankrupt.ForthetimebeinghoweverLi-ion(andtosomeextentleadacid)isthego-totechnologyforaprojectdeveloperseekingdebtfinancing.AssuchLi-ioncompaniesaredominatingmarketshareandsuppliershavenowsecuredlong-termcommitmentfromautomakers.ArecentoversupplyofLi-ionbatteriesisalsohelpingtopushpricesdown.Ononehand,thismeanstheotherchemistriesarelikelyfacingatoughroutetomarket.Ontheotherhand,anumberofresearchinitiativesarefocusingondevelopmentandbringingdowncostsinJapan,theworld’ssolemanufacturerofsodiumbatteries,theUSandEurope.OverthelastfiveyearstheEUbatterymanufacturingindustrycollectivelyspentEUR740milliononResearch&Development&InnovationandwithcontinuedresultsfromR&Dnewchemistriesmaywellbeabletooffercosteffectivesolutionsinspecificnicheapplications.

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they are crucial as they provide an industry benchmark for a project and a certain level ofguarantee thataproject is followingbestavailableguidelines.Oneproblemtodatehasbeenthat battery technology has developed much faster than CSR with a wide variety ofconfigurations, chemistries and applications at different locations in the power system.ManyCSR are also national or regional, while manufacturers and developers tend to operateinternationally. As the number of stakeholders in the sector grow, input to CSRdevelopmentandmodificationbecomescrucialtoconveytotraditionallendersthattheindustryiscapableofsafeandreliableoperation.A number of initiatives over the last years have produced CSR for the standard batterychemistries including leadacidandLi-ion. InEurope thesestandardshavebeendevelopedbythe International Electrotechnical Commission (IEC) and cover technical features, testing andsystem integration.4 However, newer battery chemistries lack the required standards andaccordingtotheIECworkisunderwaytodevelopthesewithafocuson5:

• Terminology• Basiccharacteristicsofstoragesystemsandtheircomponentsincludingcapacity,power,

dischargetime,lifetimeandstandardunitsizes• Protocolsandsecuritystandardsforcommunicationbetweencomponents• Interconnectionrequirements• Mechanicalandelectricalsafety• Guidelinesforimplementation

In2016IECpublishedastandard(IEC61427-2)foramethodologytocompareandtestdifferentbattery chemistries in four different grid-scale applications. Once the necessary codes andstandardshavebeendeveloped,organisationssuchasDNVGLplayakeyroleincarryingoutthetestingandcertificationrequiredtoprovethesafetyandreliabilityofaproject.

Project Finance: Using Advanced Tools To Accurately Simulate Revenue In addition to having confidence in the technology, lendersmust also have confidence in theproject’s finances. Energy storage isuniquedue to its ability to captureanumberof revenuestreams across the energy system. This can be positive for the lender, as it can increaseprofitability, but it can also add complexity both to the operational demands on the storageasset as well as to the tools used to predict future revenue streams. For example, theprofitability of a grid-connected storage asset offering ancillary services, load shifting andcapacitydependsonanumberoffactorsincluding:

“Developingcomprehensiveand‘wrapped’warranties,alongsideappropriatecodes,standardsandregulationsisanimportantsteptowardsincreasingconfidencefromtraditionallenders.”

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• Pricevolatility• Existinggenerationmixandchangestogeneration/demandprofilesovertime• Availabilityofcompeting flexibilityoptions (e.g.otherstorage,demand-side resources,

flexiblethermalplant)• Gridcapacityandcongestioninagivenarea• Pricesofancillaryservicesoffered• Priceofcapacity• Availabilityofstorageassettosuccessfullydeliverunderallcontracts• Weatherpatterns• Anyotherfactors(includingallcostelements)

AC&Istorageassetwillalsobeaffectedbynon-powermarketrelatedfactorssuchaschangesto labour force,buildingadditionsor changes tomanufacturingequipment.A requirement tobetterunderstandsuchfuturecomplexrevenuestreamsistoapplyadvancedsimulationmodelsusingreal-lifehistoricalmarketdata.Typicallyittakesseveralyearsofhistoricaldatatoproducerobust results.6 For C&I sites it is generally harder to get hold of reliable data although it ispossibletoobtainthis;inparticularinEuropewheredataonconsumptionpatternsiscollectedthrough EU-driven energy efficiency initiatives.7 Project developers are clear that simulationtoolsarenotabletosubstituteforreal-lifeoperationaldata,whichiswhymarketdeploymentandtestingoutinthefieldiscrucialforanystorageasset.AsmentionedbyRosarioPolito,Headof InnovationandStorageatTerna (ItalianTSO),at theEnergyStorageWorldForum in2017,therearestillimportantlessonstolearnfromactualfieldoperationofstorageassets.

Making Energy Storage Bankable: Key Points

• Increasingthebankabilityofbatterystorageprojectsiskeytoenableaccesstoalargerpooloffinanceincludingdebtandequitytherebyallowingmorerapidandcost-effectivedeployment

• Lendersmusthaveconfidenceinboththetechnologyandthefinancesofaproject• Improvedwarrantiesandstandardsandcertificationsarekeytoinspireconfidence

inlenders• Codes,standardsandregulations(CSR)existfortraditionalchemistriesbutare

lackingformorenovelones• Advancedsimulationtoolsbasedonreal-lifedatashouldbeusedtoestimate

futurerevenuestreams

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Issue 2: Improving Battery Storage Economics: Improving Revenue Certainty And Achieving Cost Reductions Severalaspectsofmakingaprojectbankablearetoalargeextentwithinthecontrolofdevelopersandowners.Providingwarrantiesandadheringtocodesandregulationscanbeguaranteedthroughrigorousqualityassurance,projectmanagementandexperiencewiththetechnologyoutinthefield.

Whatdeveloperscannotprovideawarranteeonisthemarketandregulatorylandscapethatgovernwhetherstorageassetsareabletomonetizetheirservices.Todate,thevastmajorityofservicesstoragecanprovidetothesystemareinaccessibleandallowingstorageprovidersaccesstothese,alongsideachievingcostreductionsinthetechnologyitself,isnecessarytopushingstoragedeploymentfurther.IndustryandpolicymakersonbothEUandnationallevelwillthereforeneedtoworkcloselytogethertoensureactionontheseareas.

Opening Up Markets And Ensuring Longer-Term Revenue Certainty For Storage TheEuropeanAssociation for Storageof Energy (EASE) identified34different applications forenergy storage in the electricity sector spread out across generation/bulk services, ancillaryservices,transmissionanddistributionsupportandcustomerenergymanagementservices.8Forthe time being, most grid-scale business models rely on single use cases (e.g. frequencyregulationorrenewablecapacity firming)with fewadditional revenuestreams. Accessingthemultipleapplicationsavailabletostoragecouldthereforesignificantlyimproveoverallrevenues.Usingthebatteryforasinglerevenuestreamalsomeansthebattery isunderutilisedandthatpayback times are longer thannecessary. For the timebeinghowever there are anumberofmarket,regulatoryaswellastechnicalquestionsthatneedtobeaddressedanduncertaintyonrevenueisoneofthekeybarrierstofurtherdeploymentmentionedbystoragedevelopers(seeFigure3).

FIGURE3:FRAMEWORKFORUNDERSTANDINGTHEFEASIBILITYOFSTORAGEREVENUESTREAMS

Lack Of Appropriate Markets For Valuing And Defining Storage Lack of appropriate market mechanisms sometimes means that although storage provides avalue somewhere in the system (e.g. by shifting and reducing peak load) there is no formalmeansofvaluingandmonetisingonthatserviceforthestorageowner.Forexample,deployingabatteryonacongestedpointofthenetworkmaymeanthatthenetworkoperatorcouldbe

1. Isthereamarket

mechanismforvaluingthestorage

application?

2. Doesthestorageassethaveaccessto

thismechanism?

3. Dothedetailsofthemechanismcreateafeasiblerevenuestream?

4. Howcapableisthestorage

assetofdeliveringinto

multiplemarkets?

Marketsandregulation Technology

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spared additional investment in transmission anddistributionupgrades.However, there is noformal mechanism for the storage operator to capture this generated value. In general, themechanismsthatdoexist(e.g.arbitrageorpeakdemandmanagement)tendtoundervaluetheserviceprovidedtothesystemasawhole.Thisoftenleadstoasituationinwhichthecostsofstorageareprivatisedwhilethebenefitsaresocialised.Furthermore, as energy storage canboth charge anddischarge it sits bothon the generationanddemandsideofthevaluechain.Thishas,todate,causedconfusionregardingappropriatedefinitions, which again has knock-on effects aroundwho can own storage assets andwhichmarkets storage can legally bid into. For example, in the EU storage has been classified asgenerationtherebyexcludingtransmissionanddistributionnetworkoperatorsfromowninganddevelopingbatteriesforuseinforexampletransmissioninvestmentdeferralaswellasinenergymarkets.

Over the last few years, however, steps have been taken to address these barriers. The UKenergy regulator (Ofgem) has proposed modifying the existing generation license toaccommodate storage as a subset of generation. The changes would deal with the issue of‘double charging’ in which storage assets are taxed for both electricity consumption andproduction.Duetoapressingneedto integrate increasing levelsof renewables, Italyhasalsomade progress on allowing Terna, the Transmission System Operator, to own and operatebatterieswhich has led to Italy being one of the leading battery storagemarkets in Europe.9WorkiscurrentlyalsoongoingtoincludeauniquedefinitionforenergystorageinthenewEUElectricity Directive from November 2016 which under certain circumstances may allowownershipofstoragedevicesbytransmissionanddistributionoperators.10

Lack Of Access To Markets Or Prohibitive Market Regulations Holds Storage Deployment Back Even if there is an actual market mechanism for the value provided by storage, some EUcountries are not open for competition or do not allow storage assets to compete. Systemservices such as frequency control in Italy for example are not market based, while othermarkets such as Spain impose large size requirements and other regulatory barriers thatpreclude storage assets fromparticipating.11 Large size requirements above the 10MWmarkare generally prohibitive for storage developers if aggregation of multiple resources is notallowed.InmanyEuropeancountries(e.g.Estonia,Ireland,Italy,PolandandPortugal)therearestillseveraltypesofancillarymarketsfromwhichaggregatedloadisprohibitedsuchasprimary,secondaryandtertiaryreservemarkets.Industryshouldthereforecloselywatchwhatactionisbeingpromotedtochangetheseregulatoryrestrictions.

For example, France, Belgium, Switzerland and the UK have all moved to open up ancillarymarkets to aggregated resources. This pointwas further addressed in the renewedelectricitydirective,andbydoingsotheEuropeanCommissionsetthefirststepstowardsmoreinclusivemarketstructures.Ithasbeensuggestedthattheseinitiativesmustnowbeimplementedusingsecondary legislation such as the Network Codes, which are the set of rules drafted by theENTSO-Eandgovernthetermsandconditionsunderwhichflexibilityproviderssuchasstorage

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willbeabletoparticipate inelectricitymarkets.12TheoutcomeofthesedevelopmentswillbeformativefortheEUstoragemarketgoingforward.

Markets Do Not Provide Long Term Revenue Certainty Even if there is a way of valuing energy storage services and the asset has access to thesemechanisms,thereislittleinthewayofguaranteesforinvestorswhoareinterestedinalong-termrevenuestreamforthedurationofanasset’slife.Storageassetshaveeconomiclifetimesof>10yearsanddeveloperswouldliketoseecontractscoveringthatlifetime.Atthemoment,however,most ancillary contracts tend to be short-term or on an ad hoc basis because gridoperatorsdonotwanttoexposethemselvestotheriskofoversubscribingandoverpayingforaservice.

TheFirmFrequencyResponse (FFR)market in theUK forexample is runasamonthly tenderthathardlyprovides revenuecertainty fora storagedeveloper.ThenewEnhancedFrequencyResponse (EFR) provides more certainty via four-year contracts, but this still means storageowners are faced with several years of uncertainty. A similar dilemma exists for capacitymarkets although storage operators in the UK proved themselves capable of landing 15-yearcontractsinNationalGrid’s2016Decemberauction.13

Onesolutionwouldbetoincreasethecontract lengthforancillaryservicesbutthiswouldnotmeet the risk requirementsof thegridoperator regardingoversubscription.Alternatively, theindustrycouldmoveawayfromtheideaoflongercontractlengths,andinsteadmovetowardsapurelymerchanttradingplatformforflexibilityonwhichalltechnologiescompeteonanequalfooting.Fastresponseresourceslikebatterieswouldlikelydowell inthesemarkets.However,financingtermswouldprobablynotbeascompetitivecomparedwiththoseprojectswithlongercontractedrevenues–asaresultthissolutionwouldlikelypushuptheoverallsupplycost.

Technical Requirements For Revenue Stacking Can Be Challenging Marketandregulatoryaspectsarenottheonlychallengetobuildingstrongerrevenuestreams.Different technical requirements from each market can place stringent demands on thesoftwareandhardwareofthebatteryleadingtorisksthattheassetmaynotdeliveritsserviceas contracted. As mentioned by Dr. Johannes Werhahn at the Energy StorageWorld Forum2017, theoptimizationofmultipleapplications, togetherwith intelligent forecasting, isoneofthekey focusareas forpowerutilityE.ONgoing forward. Dueto this increased interest fromdevelopers,improvementsinsoftwareandcontrolsystemsarenowrenderingrevenuestackingmore feasible, as the storageasset is able tohandlemultipleoperational patternswithmoreease than before. The traditional approach for managing battery assets is to deploy a plantcontroller that interacts with the batteries and a separate power control system (PCS) thatinteractswith thebatterymanagementsystem(BMS).Projectdevelopersarenowdevelopingsoftware basedplant controllers that allowdirect control between thebattery, PCS andBMShence making advanced control and optimisation of revenue streams more manageable. Assoftwaresystemsdevelop itwill thereforebecrucial forvendors,EPCsandotherstakeholderstohaveathoroughunderstandingoftheircapabilitiesandimpactsonrevenuegeneration.

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Examplesofthesetypesofsystemsarecurrentlybeingused intheOncormicrogridproject inTexasandanumberofothersystems inEuropeandtheUS.Forexample,EDF’s49MWWestBurton battery storage project in the UK was the cheapest bid in the Enhanced FrequencyResponse (EFR) auction due, in part, to its use of revenue stacking with the UK capacitymarket.14 The utility-owned WEMAG project in North Germany also recently announced acapacity expansion to enable the provision of black start services in addition to frequencyregulation.15

Reducing The Cost Of Storage Inadditiontoopeningupmarketsandmakingrevenuestreamsmorerobust,costreductionisone of the key ways of increasing the competitiveness of battery storage against othertechnology options. Driven primarily by increased manufacturing in the electric vehicle andconsumersectors, themanufacturingcostof lithiumbatterieshas fallendramaticallyover thelast few years. Costs of $273/kWh are now being reported by some manufacturers, whichrepresent a 73% price reduction since 201016. While still too expensive for certain storageapplications,suchasloadlevellingandarbitrage,thesereductionshaveallowedthemajorityofstorage deployment to date focusing on niche applications in e.g. frequency regulation andpeakerreplacement.Buthow lowarebatterycostsexpectedtogo?BNEFpredicts thatpricesforlithium-ionbatteriesmayfallaslowas$73/kWhin2030,whichcouldopenupthemarkettoother revenue streams. TheUSDepartment of Energy (DOE) has announced an interim pricetargetof$125/kWhby2020.17

“Assoftwaresystemsdevelopitwillbecrucialforvendors,EPCsandotherstakeholderstohaveathoroughunderstandingoftheircapabilitiesandimpactsonrevenuegeneration.”

“Drivenprimarilybyincreasedmanufacturingintheelectricvehicleandconsumersectors,themanufacturingcostofLi-ionbatterieshasfallendramaticallyoverthelastfewyears.”

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GRAPH1:PASTANDESTIMATEDLI-IONBATTERYMANUFACTURINGCOST18

Despite the attention given to manufacturing costs, batteries comprise roughly 60% of aninstalled battery system. The remaining costs comprise of hardware (20% - inverters,transformers etc.), development and soft costs (11% - profit, customer acquisition,interconnectionetc.) andEPC (9% - control system, testingandcommissioningetc.).19Projectdeveloperswerereportingtotalinstalledcostsoflessthan$500/kWhin2016,whichisaheadofestimatesfrom,forexample,theEPRIwhichsuggestedpricesof$350-500/kWhby2020.20

Tobetterunderstandthecompetitivenessofstorageit ishelpfultoalsodiscuss levelisedcost.Levelised cost is traditionally used for fossil or renewable power plants to gauge the price atwhich a specific project would need to sell their output at in order to breakeven over thelifetimeoftheproject.Becausestorageisahighlyversatiletechnologythatissizedforanumberof different applications the costs will also vary considerably depending on the technicalparametersofthebatterysystem.Thetotalelectricitycharged,storedanddischargedoverthelifetimeoftheassetisalsocloselyrelatedtothetypeofapplication(s)thesystemisoptimizedfor.ThemostrecentLazardLevelisedCostofStorage3.0analysisprovidesinsightsintothecosttrendsofstorageperapplicationandshowsthattheoveralltrendintheindustryistowardscostreductions formostapplications.Thesearedrivenby thedevelopmentofmorecost-effectivebatteries,bettersystemintegrationandlongerbatterylifetimes.21

Furthercostreductionsinbatterymanufacturingwillcontinuetobedrivenbymassproductionand economies of scale through the electric vehicle industry. Estimates now suggest thatautomotivebattery packproduction volumesof over 200,000will cost less than$200/kWh.22Improved and scaled-upmanufacturing processes are therefore key to unlocking further costreductions.Researchanddevelopmentalsocontinuestohaveasignificantroletoplay.Current

0

200

400

600

800

1000

1200

2010 2011 2012 2013 2014 2015 2016 2020 2025 2030

$/kW

hPastandestimatedLi-ionbatterymanufacturingcost

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emphasisinLi-ionresearchfocusesondevelopinghigh-energysiliconanodes(4200mAh/g)toreplacecurrentgraphiteanodes(372mAh/g)maypavethewayforsignificantlyhigherenergydensities and reduced cost per capacity.23 Further reductions could, for example, also comefromtheindividualhardwarecomponents,systemintegrationandthebalanceofplantcosts.

Improving Battery Storage Economics: Key Points

• Storagecanprovide>30servicestothepowersystem.Marketandregulatoryframeworksneedtoopenuptostorageandallowfullparticipationacrossenergy,capacityandancillarymarkets

• Batterymanufacturingcostshavecomedown73%from$1000/kWhto$273/kWhsince2010-mainlydrivenbyeconomiesofscaleanddevelopmentsintheelectricvehicleindustry.Thisisstilltooexpensiveforarbitrageandloadlevellingapplicationsbuthasopenedupthemarkettolarge-scalenicheapplicationssuchasfrequencyregulation

• Furthercostreductionsarelikelytocomefromcontinuedincreasesinmanufacturingscale,R&Deffortsandinbalanceofsystemcomponents.BNEFpredictsapriceof$73/kWhin2030

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Issue 3: Unlocking New Geographic Markets For Storage To date, battery storage deployment has been concentrated in a handful of developedeconomies in North America, East Asia & the Pacific and Europe& Central Asia. The leadingcountries are the United States, South Korea, Japan and a number of European countriesincludingGermany,theUnitedKingdomandItaly.Intotal,around96%ofinstalledprojectsexistinthesecountries.24Theremainder4%areinChinaandSouthAmerica,predominantlyinChile.TheMiddleEast&NorthAfrica,SouthAsiaandSub-SaharanAfricaonlyhavenegligibleamountsofbatterystorage.

FIGURE4:INSTALLEDRATEDPOWERBYREGION

Thisunevendistributionofprojectsaroundtheworldmeansthatthere issignificantroomforgrowth outside of the main markets. The opportunity is particularly pronounced in manydevelopingcountrieswherepowersystemsarelessadvancedandcountriesmaychooseto‘leapfrog’overthetraditionaldevelopmentpathchosenbyothercountriesinfavourofmarketandtechnical arrangements more suitable for today’s energy technologies. Several of thesecountries are alsoendowedwith generous solar resources,which if developedand combinedwith cost-effective storage can deliver cheap and low-carbon base load electricity. Anotherdriver is the need to upgrade an ageing grid infrastructure at the same time as electricitydemandisexpectedtogrow.

Thesedriverscombinedwithlearningfromthemoreadvancedregionsarethereforecreatinganenvironment ripe for further storage deployment. In South Africa, the country’s main utilityEskomestimatesaneedfor2GWofenergystorageonitsnetworkstoaccommodateatargetof18GWofrenewablesby2030andrecentlyopenedatestingfacilitytoassessdifferentstorageoptions.25 As part of the testing facility’s activities, the US Trade and Development Agency(USTDA) announced in September 2017 that they intend to fund the capital cost for a flowbattery provided by US company Primus Power. The battery will be developed by local

3%17%

34%

46%

%Installedratedpowerbyregion

LatinAmerica&Caribbean

Europe&CentralAsia

EastAsia&Pacific

NorthAmerica

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developer Solafrica Energy. USTDA also recently (July 2017) announced a partnership withKenyanrenewabledeveloperXagoAfricaandUSbatterystoragedeveloperAlevotofunda40MWsolarPVplantwithintegratedLi-ionstorage.TherestofSub-SaharanAfricaisexpectedtopredominantly deploy remote power systems due to the lack of a well-developed gridinfrastructure.PowerAfrica,anotherUSTDAfundedproject,aimstodevelop25solarmicrogridsacrossNigeriaincludinggridinfrastructure,smartmeteringandstoragesystems.

Latin America and the Caribbean are considered attractive markets for energy storagedevelopment, also because of their large-scale growth ambitions for solar PV. The majormarkets in Latin America, Chile, Argentina, Mexico and Brazil, have or are in the process ofderegulatingtheirpowermarketstherebypavingthewayforindependentpowerproducersandmerchantstoragedevelopers.26In2015Boliviadeployeda5MWsolarprojectconnectedwitha2.2MWbatterythatsupplies54,000inhabitants inanearbytown.Theprojectwasfundedbythe state-owned electricity company aswell aswith a grant from theDanish Corporation forDevelopmentinBolivia.TheCaribbeanisexpectedtodeploybatterysystemsforremotepowerapplications and there are already several projects underway including an 8MW lithium-ionsystemontheDominicanRepublic.In2017,EDFinstalled5MWofbatterystorageforfrequencysupportonGuadeloupeand storagedevelopersareexpecting increaseddeploymentover thenextyears.Forexample,FrenchstoragedeveloperQuadranisexpectingafour-foldincreaseinitsownstoragedeploymentontheFrenchCaribbeanislandsbetween2018and2023(50MWhto200MWh).

In East Asia and the Pacific, China is expected to be the leader in storage deployment.27 Thestate-ownedutilityStateGridCorporationofChinaiscurrentlyopeningupforcompetitionfromnon-state power providers. China also has aggressive concentrated solar targets (10 GW by2020)althoughthiswilllikelybenefitthermalstorageratherthanbatteries.InadditiontoChina,thePhilippineshas100MWoflithium-ionbatteriesinthepipelineandlastyearAESinstalleda10MWbatteryinthecountry.

SouthAsia’senergystoragemarketisexpectedtobedominatedbyIndia.Ambitiousrenewableenergy policies, such as NarendraModi’s target of 100GWof solar PV by 2022, couldmakeIndia the largest solar PV market in the world and pave the way for associated storagedeployment.Aswithotherregions,India’sstoragedeploymentwillalsobedrivenbypopulationgrowth and investments in an ageing grid infrastructure. One of the more positive recentdevelopmentswasaJuly2016tenderinwhichhundredsofmegawattofsolarPVwasprocuredwhich includedthemandate todevelop5MW/2.5MWhofstorage forevery50MWofsolarPV.

These and other developments show that there are recognised benefits that storage canprovidetoemergingmarkets.However,anumberofbarrierstofurtherdeploymentofstorageneedtobedealtwith.Theseinclude:

• Marketstendtobevertically integratedandregulatedleadingtoa lackofcompetitionandremunerationmechanismsforstorageassets.Theprocessofderegulation,suchas

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that seen in Latin America and China, therefore needs to continuewith further opendialoguebetweenpolicymakersandtheinvestmentcommunity.

• Limited local experience and knowledge with storage can increase costs and supplychain risks.Todate thishasbeenasignificantbarrier tosolarPVdeployment in India.Knowledgetransferfrommoreadvancedregionsshouldthereforetakeplacetobuilduplocalexpertise.

• Access to affordable financing is hard due to projects not being seen as bankable bytraditional financiers. In some regions this is often exacerbated by political andeconomicinstability.Grantfundingandcapitalinjectionfromnationalandinternationalagencies,suchasthatseenfromtheDanishCorporationforDevelopmentinBoliviaandUSTDA’sinvolvementinAfrica,couldthereforestepintoclosepartsofthefundinggap.

Unlocking new geographic markets for storage: key points

• Thevastmajority(96%)ofbatterystorageisfoundinahandfulofcountriesincludingUnitedStates,SouthKorea,JapanandleadingEuropeancountriessuchasGermanyandtheUK

• Anumberoffactorsaredrivingstoragedevelopmentoutsideoftheseregionsincludingincreasinglevelsofrenewablepenetrationandanageinggridinfrastructure.Incountrieswheregridconnectionispoortherearestrongprospectsforstoragetocontributetoremotepowersystems

• Barriersstillremainwhichincludeaccesstoaffordablefinance,lackoflocalexpertiseandpoliticalinstabilityinsomeregions

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Issue 4: Developing New Commercial And Industrial Applications Thekeymarketsforbatterystoragegloballyhaveto-datebeengrid-scaleandresidential.Ofthecurrently 952 MW of operational battery storage projects, an estimated 41 MW could beclassified as commercial and industrial (C&I).28 However, favourable policy and technologicaladvanceshaveledtoC&Ireceivingmoreattentionfromprojectdevelopersoverrecentyears,inaddition to othermorenovel storage forms such as vehicle-to-grid (see Figure 6). Favourablepolicies include energy efficiency standards, carbon reduction initiatives and increasing peakdemandcharges. Inaddition,reductions infeed-in-tariffsforsolarPVhascreatedanincentiveforC&Icustomerstomaximiseself-consumption.

FIGURE5:OPERATIONALGRID-SCALEVERSUSC&IBATTERYSTORAGE

EnergystoragenowoffersanumberofvaluepropositionstoC&Icustomers:

• Bill management: reduction of peak demand charges by shaving peak load andflattening the load profile throughout the day. Storage in combination with on-siterenewablescouldalsocreateahedgeagainstvolatileelectricityprices

• Increasedgridindependence:higherself-consumptionofon-siterenewablesleadingtoenergybillsavingsandlowercarbonfootprint

• Ancillary services: additional business revenue throughprovisionof ancillary servicessuchasfrequencyresponseandvoltagecontrol

• Arbitrage and energy market bidding: the development of optimised control andsoftware systems may unlock new sophisticated revenue streams that allowsparticipationacrossmarketsincludingenergyaswellasancillaryandcapacitymarkets

911MW

41MW

OperationalGrid-ScaleVsC&IBatteryStorage

Grid-scale C&I

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McKinseyrecentlyfoundthatbatterystorageforcertainC&Isectorsandapplicationsisalreadyeconomically viable.29 However, a number of barriers remain to be overcome before C&Ideploymentcanberealisedonalargescale.Theseinclude:

• LackofknowledgeofenergystoragesystemsandtheirbenefitsamongstC&Icustomers• Lack of appropriate markets to properly remunerate the benefits of storage to the

system• Unique building load profiles requiring customised higher cost solution for each

customer.Thisexacerbatesalreadyrelativelyhighupfrontcosts.

StefanSchauss,DirectorofBusinessDevelopmentatWärtsilä, says that,“thequestion is thatyoudogetadifferentsetupwithC&IandevenwhenyougetasizeableC&Isegmentthereisalot of special analysis for the business case to be done. Once you have that solution there isslightly different sizing of the system that is needed – you have to look at it case by case”.30OtherdevelopersgenerallyagreethatC&Iprojectsaremorecomplexthangridscale.However,addressing these issues by findingmore customisable solutionsmeans that themarket couldgrowbyordersofmagnitudeoverthenextfewyears.AspreviousEnergyStorageWorldForumeventshaverevealed,multiplecompaniesaretargetingthesectorandC&Istorageprojectssuchas the Amsterdam Innovation Arena, using 280 repurposedNissan Leaf batteries for back-uppowerandloadshifting,areexpectedtoyieldbothsignificantcostandcarbonsavings.

Navigantestimatesa totalof9GWofC&I storageby2025,beingdrivenby stronggrowth inChinaandIndia.31BloombergNewEnergyFinance(BNEF)predictsthatby2021C&Ibehindthe

Figure6:Electricvehicles–EnablingMobileStorageAndVehicle-To-Grid

Asignificantincreaseinthenumberofdeployedelectricvehicles(EV)hasledtothepotentialforusingEVbatteriesasstoragedevices.Thereareatleasttwofactorsdrivingthisrealisation.1)TheadditionalnetworkloadfromEVswillneedtobemanagedintelligentlytoavoidexcessivecostsfromnetworkreinforcement.2)Vehiclesspendamajorityoftimeparkedeitherathomeoratwork.Thisprovidesashiftableloadcapableofinteractingdynamicallywiththegrid.Intotal,around500,000electricvehiclesexistintheEUtoday,whichifassumingastandardNissanLeafbatterysizeof24kWh,representsatotalstoragecapacityof12GWh.Aswithstationarystorageanumberofmarket,regulatory,technicalandeconomicbarriersexisttotherealisationofV2G.E4techconductedastudyontheeconomicviabilityofV2Gforindividualvehicleownersandfoundthatthetotalannualrevenuefromprovidingfrequencyresponseisunlikelytooffsetthecostofthenecessarycharginginfrastructure(E4tech,2016).However,anumberofdemonstrationprojectsaretestingtheconceptanddevelopingusefullearningincludingtheSEEV-4involving7operational,long-termpilotsin6citiesin5Europeancountries.NissanhasalsopromisedV2Gcapabilityintheirnewest2018Leafmodelalongsidethedeploymentof1,000CHAdeMOV2GcompatiblechargingstationsacrossEurope.Theseinitiatives,togetherwithanincreaseinrenewabledeploymentandneedforgridflexibility,maysoonmakeV2Gamoreeconomicstorageoption.

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meter will account for 50% of installed capacity globally (10 GW).32 Growth is also expectedfrom other market commentators who see a total of 500-600 MW C&I storage by 2021 inGermanyandUKalone.Thesectorsmostlikelytoexperiencehighdemandforstorageprojectsare retail, agriculture, water and waste treatment plants and industrial processes with aconstantdemandforpower.33

Innovationefforts are currently focusingon flexibility bydevelopinghybrid systemswithhighpowerandenergyratingscombinedwithsophisticatedcontrolsystems.34Anexampleofsuchahybridsystemisusingfast-responseultracapacitorsforhighpowerapplicationscombinedwithabatteryforloadlevellingsuchasthatusedbyDukeEnergyinNorthCarolinatosupporta1.2MWsolarinstallation.ArecentEUR4millionEUfundedprojectisalsotestingEurope’slargestcombined flywheel and battery storage system to provide frequency regulation. FurtherresearchanddevelopmentofthesesystemsmaythereforecatertoC&Ineeds,whichcoulduseseveralhoursofbackupstoragewhilealsobiddingintoancillarymarketsasasecondaryrevenueoption. While the sector is still far off the estimated 9-10 GW, an improving business case,continuedR&Dandinterestfromprojectdeveloperswilllikelydrivethissectorgoingforward.

Unlocking New C&I Appl icat ions: Key Points

• Onlyanestimated4.3%ofcurrentbatterystoragedeploymentcouldbeclassifiedasC&I

• Increasingandvolatileenergybillscoupledwithadesireformoreself-consumptionarecurrentlykeydriversforthesector

• TheC&Ispaceisgenerallyviewedasmorecomplexrequiringmorecustomisedsolutionsthangrid-scaleprojects

• Researchanddevelopmentintohybridsystemsthatcancatertoawidevarietyofcustomerneedswilllikelymakethesectormoreaccessible

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Summary Theneedtodeploystoragetohelpintegratevariablerenewablesaroundtheworldisbecomingincreasinglyobvious.ThisreporthasreviewedfourofthekeyareasinneedoffurtherworkasidentifiedbyindustrydelegatesattheEnergyStorageWorldForumin2017.Overall,theseareasrepresentissuesthatshouldbedealtwithinclosecooperationbetweenpolicymakers,industryandotherstakeholdersinordertounlocksignificantgrowthandvalueinthebatterystoragemarketgoingforwardoverthenextdecades.SpecificactionpointsaresuggestedinFigure6below.

Continuingtomakebatterystorageprojectsbankablewillensuregreateraccesstolowercostfinance,whileopeningupmarketstofairlyremuneratestoragewillimproveitseconomicsandultimatelyimprovethevaluestoragecanprovidetothepowersystem.Regulatorsneedtotakestepstoensureancillarymarketsarecompetitiveandthatregulationsdonotunfairlyprohibitstorageassetsfromcompetingwithtraditionalgenerationassets.Themassivecostreductionsseenoverthelastfewyearsarelikelytocontinue,drivenbyscaleandR&D,whichmaymakestoragecompetitiveinalargernumberofapplications.Demandfromcommercialandindustrialcustomersislikelytogrowfromadesiretoincreaseself-consumptionandreduceexposuretoincreasingenergybills;however,developersneedtofindcustomisableandcost-effectivesolutionstothoseprojectsthataregenerallyconsideredmorecomplexthangrid-connectedbatteries.Anotheruntappedareaforgrowthisthatofdevelopingeconomieswhoonlyveryrecentlystartedconsideringbatteriestomanagevariablerenewables,populationgrowthandanageinggridinfrastructure.

Progressoneachoftheseareascouldsetthestorageindustryontracktomeettheambitiousdeploymenttargetsestimatedbymarketobserversoverthenextdecade.These,andother,topicswillbeexploredinmoredetailbytopindustryleadersanddelegatesatthe11thEnergyStorageWorldForumMay14-18th2018inBerlin(http://www.energystorageforum.com)

FIGURE6:ACTIONPOINTSFORINCREASINGBATTERYSTORAGEDEPLOYMENT

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References

Thiswhitepaperissponsoredbythe12thEnergyStorageWorldForumandthe6thResidentialEnergyStorageForumwhichtakeplaceinRomefrom14th–18thOctober2019.Seethefullprogrammeatwww.energystorageforum.com

1USDOEGlobalEnergyStorageDatabase.Alloperationalandverifiedelectro-chemicalprojectsasofOctober 9th2017.2 IBESA (2017) Global SolarStorage Database.Available on:http://www.ibesalliance.org/apps/mcf/index.php?myaction=filter&sel0=1&sel1=1&sel2=2&sel3=1&sel4=1&se l5=1&sel6=1&sel7=1&sel8=1&sel9=1&sel10=13 Energy Storage World ForumwebinaronEPC:HowCanEPCsBeUniqueToTheirCustomersWithEnergyStorageProjects?September2120174 IEC (2016) ElectricalEnergyStorage:WhitePaper.Availableon:http://www.iec.ch/whitepaper/pdf/iecWP-energystorage-LR-en.pdf5Ibid.6 Energy Storage World ForumwebinaronEPC:HowCanEPCsBeUniqueToTheirCustomersWithEnergyStorageProjects?September2120177Ibid.8 EASE(2017) European Energy Storage Technology Development Roadmap. Available on: http://ease-storage.eu/wp-content/uploads/2017/10/EASE-EERA-Storage-Technology-Development-Roadmap-2017-HR.pdf9 EUROBAT (2016) Battery Energy Storage in the EU: Barriers, Opportunities, Services andBenefits.Availableon:https://eurobat.org/sites/default/files/eurobat_batteryenergystorage_web_0.pdf10EUROBAT(2016) Battery Energy Storage in Europe’s New Energy Regulatory Framework. Available on:https://eurobat.org/sites/default/files/160623_eurobat_parliamentary_breakfast_battery_storage_final2.pdf11 Italy has nevertheless managed to becomea leader in storagedeploymentinEuropelargelyduetothedecisiontoallowTernatodeployandoperatebatteries.12 EASE(2017) European Energy Storage Technology Development Roadmap. Available on: http://ease-storage.eu/wp-content/uploads/2017/10/EASE-EERA-Storage-Technology-Development-Roadmap-2017-HR.pdf13Energy Storage News (2016) Storageprojectssecure 3.2GW in UK’s Capacity Market.Available on:https://www.energy-storage.news/news/storage-projects-secure-3.2gw-in-uks-capacity-market14 EnergyStorageNews (2017) Nidec ASI will be supplier to EDF’s49MW ‘stacked revenue’ project in UK.Availableon:https://www.energy-storage.news/news/nidec-asi-will-be-supplier-to-edfs-49mw-stacked-revenue-project-in-uk15GTM(2017)ExpansionofEU’sFirstCommercialStoragePlantShowsAdaptabilityofBatteriesforGridServices.Availableon:https://www.greentechmedia.com/articles/read/eu-commercial-storage-project-shows-adaptability-of-batteres-on-the-grid#gs.xpNP0=s

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16BNEF(2017)Lithium-ionBatteryCostsandMarket.Availableon:https://data.bloomberglp.com/bnef/sites/14/2017/07/BNEF-Lithium-ion-battery-costs-and-market.pdf17USDepartmentofEnergy(2016)OverviewoftheDOEVTOAdvancedBatteryR&DProgram.Availableon:https://energy.gov/sites/prod/files/2016/06/f32/es000_howell_2016_o_web.pdf18DerivedfromBNEF(2017)Lithium-ionBatteryCostsandMarket.Availableon:https://data.bloomberglp.com/bnef/sites/14/2017/07/BNEF-Lithium-ion-battery-costs-and-market.pdfandUSDepartmentofEnergy(2016)OverviewoftheDOEVTOAdvancedBatteryR&DProgram.Availableon:https://energy.gov/sites/prod/files/2016/06/f32/es000_howell_2016_o_web.pdf19NREL(2016)BatteryEnergyStorageMarket:Commercialscale,Lithium-ionprojectsintheUS.Availableon:https://www.nrel.gov/docs/fy17osti/67235.pdf20EnergyStorageRealityCheck:Masterclass(2017).Slidesnotpublicallyavailable.SponsoredbyEnergyStorageWorldForumandrunbyElectricPowerResearchInstitute(EPRI)21LazardLevelisedCostofStorageAnalysis3.0(2017).Availableon:https://www.lazard.com/media/450338/lazard-levelized-cost-of-storage-version-30.pdf22Slowik,P.,N.PavlenkoandN.Lutsey(2016),“AssessmentofNext-GenerationElectricVehicleTechnologies”,InternationalCouncilonCleanTransportation,Availableon:www.theicct.org/sites/default/files/publications/Next%20Gen%20EV%20Tech_white-paper_ICCT_31102016.pdf23Ibid.24USDOEGlobalEnergyStorageDatabase.Alloperationalandverifiedelectro-chemicalprojectsasofOctober9th2017.Sortedbycountryandregion.25EnergyStorageNews(2017)SouthAfrica’sEskomopensbatterydemofacilityfor2000MWenergystorageneed.Availableon:https://www.energy-storage.news/news/south-africas-eskom-opens-battery-demo-facility-for-2000mw-energy-storage-n26IFC(2017)EnergyStorageTrendsandOpportunitiesinEmergingMarketsAvailableon:https://www.ifc.org/wps/wcm/connect/ed6f9f7f-f197-4915-8ab6-56b92d50865d/7151-IFC-EnergyStorage-report.pdf?MOD=AJPERES27Ibid.28USDOEGlobalEnergyStorageDatabase.Allverifiedandoperationalelectro-chemicalprojects.Allelectro-chemicalprojectswithaprimaryservice/usecasefor‘Energybillmanagement’hasbeenestimatedtobeC&I29McKinsey(2017TheNewEconomicsofStorage.Availableon:https://www.mckinsey.com/business-functions/sustainability-and-resource-productivity/our-insights/the-new-economics-of-energy-storage30EnergyStorageWorldForumwebinaronEPC:HowCanEPCsBeUniqueToTheirCustomersWithEnergyStorageProjects?September21201731Navigant(2016)MarketData:Commercial&IndustrialEnergyStorage.Availableon:https://www.navigantresearch.com/research/market-data-commercial-industrial-energy-storage32EnergyStorageWorldForumwebinaronEPC:HowCanEPCsBeUniqueToTheirCustomersWithEnergyStorageProjects?September21201733GTM(2017)C&IStorageExpectedtoGrowThreefoldinGermanyandtheUKby2021.Availableon:https://www.greentechmedia.com/articles/read/study-sees-big-ci-storage-potential-in-germany-and-u-k#gs.Lu9rxZg34Navigant(2016)MarketData:Commercial&IndustrialEnergyStorage.Availableon:https://www.navigantresearch.com/research/market-data-commercial-industrial-energy-storage