Energy Storage Market in New York Poised for Double Digit Growth

New York is positioned to capture significant chunks of the energy storage market nationally and worldwide, according to a new state report.

energy storage market“The Energy Storage Industry in New York State: Recent Growth and Projections 2015 Update” forecasts that the state could capture 15 percent of the North American energy storage market and 5 percent of the global market by 2025.

The state already held five percent of the North American energy storage market as of 2015, and 1.5 percent of the worldwide market.

The growth comes as New York strives to position itself at the forefront of the distributed energy and microgrid revolution. Energy storage is a crucial component of the kind of distributed electric grid the state is trying to create through its evolving energy policy, Reforming the Energy Vision, or REV.

Energy storage employed about 3,900 workers in New York and generated revenues of about $910 million, as of 2015. A forecast to 2030 shows 27,000 jobs in energy storage and revenue reaching $9 billion.

The state is poised for double digit revenue growth in its energy storage market, especially for electric grid technologies. New York’s $175 million market for these technologies in 2015 grows to $1.3 billion by 2020, a 53.2 percent compound annual growth rate (CAGR) and reaches $5.4 billion by 2030, a 27 percent CAGR over 15 years.

Forecasts a 53.2 percent annual growth rate…

Growth is slower, but still significant for energy storage technology used in electric vehicles and transportation. New York’s share of that market rises from $132 million in 2015 to $749 million in 2020 for a 35 percent CAGR. It reaches $1.8 billion by 2030, a 17.2 percent CAGR.

The report points to policy wildcards that could influence the growth, particularly how quickly the state implements REV and how markets react to a state goal to make 50 percent of its electricity from renewables by 2050.

New York’s energy storage market is being bolstered by the New York Battery and Energy Storage Technology Consortium (NY-BEST), created in 2010 by the New York State Energy Research and Development Authority (NYSERDA). The consortium now includes Fortune 500 companies, start-ups, universities, national research centers and laboratories spanning all facets of the energy sector.

“New York State has become a hub for energy storage technologies, creating new, skilled technology jobs and meeting the needs of utilities, building owners, manufacturers and other large power users,” said John Rhodes, president and CEO of NYSERDA, which commissioned the report from Massachusetts-based Industrial Economics.

NY poised to capture chunks of national and global energy storage marketClick To Tweet
New pledge for electric vehicle charging

NYSERDA says that it has invested in more than 50 energy storage technology development projects across the state. It also is working to reduce soft costs associated with distributed energy storage systems by 33 percent in five years.

Separately,  Governor Andrew Cuomo said in his recent state-of-the-state address that NYSERDA and the New York Power Authority (NYPA) will build 500 workplace electric vehicle charging stations by 2018.

NYPA will invite municipalities to tap into a master contract that offers better pricing for the supply, installation and maintenance of charging stations. Local governments can also obtain state-funded rebates from the Department of Environmental Conservation or NYSERDA. The rebates will cover up to 80 percent of the installed costs.

“We want to accelerate the use of electric vehicles and encourage drivers across the state to consider ownership,” said Gil Quiniones, NYPA president and CEO. “Governmental entities are a logical place to start cultivating that interest so we’ve put together a benefits package that makes it easy and economical for them to join in the push for more widespread use of clean technologies.”

In all, Cuomo aims to have 3,000 EV charging stations on line by 2018. More than 1,100 have been installed since 2013 —including those by municipalities and businesses — bringing the state total to about 1,600 across the public and private sectors.

Track news about the energy storage market by following Microgrid Knowledge on Twitter @MicrogridNews.

Sign up for our newsletter and get the latest microgrid news and analysis.
Subscription Type



Elisa Wood About Elisa Wood

Elisa Wood is the chief editor of MicrogridKnowledge.com. She has been writing about energy for more than two decades for top industry publications. Her work also has been picked up by CNN, the New York Times, Reuters, the Wall Street Journal Online and the Washington Post.

Comments

  1. Prasad Dahapute says:

    Microgrids market will grow manifold over 2020 because of removal of subsidies by the current administration. When we (cleantech) are protected, we become little slow in innovation and cost reduction. Now the grants are gone, we will win the market through cost optimization. This will not only make our cleantech businesses stronger but widely accepted by all.

Leave a Comment

*