A new report from Navigant
Research discusses how energy storage value-added services (VASs)
have evolved and how the storage industry has grown by using VASs to
reduce customer risks.
Because potential customers are generally unfamiliar with energy storage
system (ESS) technology, VASs are required for projects to be considered
bankable by customers and investors. These services shift technological
and financial risk for project performance from customers to the battery
hardware providers and systems integrators that design and build an ESS. Click
to tweet: According to a new report from @NavigantRSRCH,
VASs present opportunities for innovative companies to establish a
leadership position as the market continues to evolve.
“VASs include operations and maintenance (O&M), warranties, and
performance guarantees, which are collectively fundamental components of
any project proposal,” says Alex Eller, senior research analyst at
Navigant Research. “Energy storage VASs have played a fundamental role
in the growth of the energy storage industry over the past decade and
will remain an important component of new projects.”
To stay competitive in this market, Navigant Research recommends ESS
providers continue to innovate on their existing VASs and maintain
flexibility in their offerings to design a VAS program to suit the needs
of their customers. Vendors of emerging technology (such as flow
batteries) need to offer VASs that can reduce the perceived risk to
customers by taking on the performance risk themselves.
The report, Energy
Storage Value-Added Services Reduce Risk and Unlock Growth Opportunities,
discusses how energy storage VASs have evolved and how the storage
industry has grown by using VASs to reduce customer risks. The study
provides an overview of the ESS project value chain including who
provides VASs and innovative approaches that companies are taking to
employ VASs in creative ways to reduce risks for customers. The report
also analyzes the potential evolution of these services, including
opportunities for new business lines and revenue streams to be developed
for both incumbents and new entrants in the market. An Executive Summary
of the report is available for free download on the Navigant
Research website.
About Navigant Research
Navigant Research, the dedicated research arm of Navigant, provides
market research and benchmarking services for rapidly changing and often
highly regulated industries. In the energy sector, Navigant Research
focuses on in-depth analysis and reporting about global clean technology
markets. The team’s research methodology combines supply-side industry
analysis, end-user primary research and demand assessment, and deep
examination of technology trends to provide a comprehensive view of
clean, intelligent, mobile, and distributed energy. Additional
information about Navigant Research can be found at www.navigantresearch.com.
About Navigant
Navigant Consulting, Inc. is a specialized, global professional services
firm that helps clients take control of their future. Navigant’s
professionals apply deep industry knowledge, substantive technical
expertise, and an enterprising approach to help clients build, manage
and/or protect their business interests. With a focus on markets and
clients facing transformational change and significant regulatory or
legal pressures, the Firm primarily serves clients in the healthcare,
energy and financial services industries. Across a range of advisory,
consulting, outsourcing, and technology/analytics services, Navigant’s
practitioners bring sharp insight that pinpoints opportunities and
delivers powerful results. More information about Navigant can be found
at navigant.com.
* The information contained in this press release concerning the
report, Energy Storage Value-Added Services Reduce Risk and Unlock
Growth Opportunities, is a summary and reflects Navigant Research’s
current expectations based on market data and trend analysis. Market
predictions and expectations are inherently uncertain and actual results
may differ materially from those contained in this press release or the
report. Please refer to the full report for a complete understanding of
the assumptions underlying the report’s conclusions and the
methodologies used to create the report. Neither Navigant Research nor
Navigant undertakes any obligation to update any of the information
contained in this press release or the report.
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