Energy Storage Market Assessment

Identify Business Opportunity, Competition & Risk in this Key Growth Sector

Do you understand the technology solutions, business considerations and competitive environments of the booming energy storage market?

Energy storage differs from other energy technologies in the breadth and complexity of its addressable market and revenue opportunities. This training course provides a comprehensive, business-focused analysis of these opportunities, allowing attendees to analyse, understand and segment them. While naturally focusing on battery storage, we also cover the variety of competing storage technologies and describe the wide variety of problems energy storage seeks to solve, at a wide range of deployment sizes and timescales, including key issues around practical project delivery.

Attendees will leave with a clear understanding of why and where storage markets are growing, what could limit this growth and what the future trends will be. So, if you are thinking of investing in or developing an energy storage business, this course provides your essential grounding in the core issues.

Summary & key features

The course is designed to provide a clear, independent, business-focused introduction to the subject in language suited to non-engineers; particularly senior, commercial executives and investors. No prior knowledge is assumed or required. Along with presented core information, you’ll examine examples from around the world, discuss market analysis variables and quantify key issues using simple numerical calculations and Excel-based tools.

Top Learning Outcomes:

  • Speak the language of energy storage: terminology and concepts explained
  • Review, segment and evaluate multiple current and emerging market opportunities for energy storage
  • Understand the key variables determining the economics of energy storage projects
  • Evaluate the practical issues around project development and ‘revenue stacking’
  • Know how to systematically assess new energy storage market opportunities
  • Be better able to converse with storage project partners, suppliers or investors
  • Be better able to identify key investment and project performance risks
  • Learn how to analyse and critique energy storage business models

Who should attend?

This course is ideal for you if:

  1. You are working within the power sector in a commercial or business development role. You need a clearly-explained, multi-faceted understanding of how, where and why energy storage will disrupt existing markets, so that you can understand the new market opportunities and competitive risks facing your business.
  1. You are from the investment community. Energy storage presents a fast-growing market opportunity for you, but you want to gain an independent perspective on the economic environment in which storage projects operate, and the operational and revenue risks that are important to them.

Course Takeaways

  • Presentation slides (pdf provided – hard copy at cost, on request)
  • Certificate of attendance (pdf provided – hard copy at cost, on request)
  • Copies of all examples and numerical calculations used during the course
  • Comprehensive set of references and further reading
Agenda details

The course begins by providing a solid grounding in the current drivers for energy storage growth, including the impact of renewable energy on electricity system flexibility, along with key terminology and concepts. The landscape of energy storage solutions is then examined, with a particular focus on their competitive pros and cons, commercial status and likely evolution.

Key segments of the energy storage market are examined, using regularly updated real market examples to illustrate each of them and to focus the discussion on economic drivers, trends, business cases, market sustainability and growth potential.

Finally we examine the key considerations and requirements in energy storage project development, including locations, planning, contracts and financing (from the investor’s perspective); plus an assessment of the evolving energy storage value chain and key players.

(A full 3-day agenda is outlined below; contact to inquire about abridged or customised versions).

DAY 1: Assessing the Energy Storage Competitive Environment

The key principles of energy storage

  • Reviewing the fundamental market drivers for storage
  • Different supply/demand balancing timeframes in a flow-based energy system
  • System inflexibility indicators
  • At first glance: identifying attractive storage markets

Storage market segmentation

  • Customer needs and applications for energy storage
  • Locations for energy storage
  • Storage channels to market and barriers to entry
  • Evaluating the key determinants of the market value of energy storage

Technology review and competitive assessments

  • The current status and key features of battery and competing storage technologies
  • Selecting the most important criteria by which to compare energy storage solutions
  • Comparative advantage assessments (an example scorecard approach)
  • Technology vs. market segmentation

Value chain and market players

  • Identifying the main players and relationships in the energy storage space
  • Other key energy storage stakeholders
  • Why the new business of aggregation is so important
  • Sector coupling and its impact on energy storage

DAY 2: Assessing Key Storage Revenue Opportunities, Now & in Future

Sector focus: grid and ancillary services

  • Inertia, frequency control, black start, non-wire alternatives and other market opportunities for energy storage within grid/power systems
  • The unique role of storage as a grid system asset
  • Examining current examples and the lessons from them, including market saturation risks
  • Assessing the future growth of energy storage opportunities for power system control and optimisation

Sector focus: meeting peak demands

  • Energy shifting and arbitrage: is there a business case?
  • Examples of energy storage as an alternative to traditional ‘peaker’ plants
  • The business opportunities from providing capacity guarantees to power system planners, including capacity markets
  • Drivers for the increased value of peak power, and the competing solutions aiming to monetise it

Sector focus: storage behind-the-meter

  • End-use energy costs and the factors driving the uptake of energy storage at C&I (commercial and industrial) sites, illustrated with examples
  • Aggregation and smart demand: it’s not just about storage
  • Packaging energy storage as an energy efficiency service for corporate customers
  • Identifying the market requirements to create value in small-scale and residential energy storage deployment, illustrated with examples

Market outlook

  • Changing fundamentals and the evolution of the market value of energy storage
  • New competitors and the evolution of the competitive environment
  • The policy environment, external trends and emerging substitutes for energy storage
  • Opportunity heat mapping: which new revenue streams are worth pursuing, and when?

DAY 3: Assessing Project Delivery Risks

Business case & economic fundamentals

  • Market entry strategies
  • Costs and ‘levelized’ costs, including the importance of balance of system components
  • Efficiency, cycle life and degradation: from metrics to business impacts
  • Financing costs and investment sources

Energy storage project delivery

  • The essential project development and planning considerations; including land, grid connectivity and more
  • Site selection factors, including renewable power integration (hybrid projects)
  • Key project and contract structures
  • Checklist of (and risk-mapping) the issues crucial to making any deliverable project

Project adaptability

  • Key project timeframes
  • Revenue stacking: concept vs. reality
  • The pros and cons of an adaptable approach
  • Barriers to adaptability, including contractual limitations and warranties

Market assessment review

  • A systematic approach to developing, testing and delivering an energy storage business case

Availability & inquiries

Training for your company:

  • The course can be delivered at your company premises or preferred venue, for small groups
  • Pricing is on a transparent day-rate basis, according to location (inquire below)
  • The agenda above is the recommended “off-the-shelf” agenda, but limited customisation is possible (inquire below)

Training for individuals:

  • Grey Cells Energy does not organise open/public courses itself, but instead partners with specialist 3rd-party event organisers. Contact or inquire below for the latest calendar dates.
  • If you are interested in remote learning – covering some or all of the topics on a one-to-one basis via the Internet – inquire below.

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