Distributed energy storage systems are driving development of software platforms that can serve as virtual power plants

A new leaderboard report from Navigant Research examines the strategy and execution of 14 leading integrators of distributed-scale energy storage systems (ESSs).

Energy Storage

A new Navigant Research report finds grid benefits from distributed-scale energy storage systems are driving the development of software platforms that can serve as virtual power plants.

To date, distributed-scale ESSs have focused on providing storage benefits to residential or commercial and industrial (C&I) host facilities, including resilient backup power and energy demand charge savings. Companies such as Green Charge Networks, Stem, and Sunverge are Leading Integrators of Distributed-Scale ESSs.

However, stakeholders in the stationary energy storage market also recognize that these ESS installations can deliver grid benefits to regional transmission organizations and independent system operators, as well as local distribution system utilities.

“Leaders in the distributed-scale ESS sector have built on innovative software platform capabilities to focus on playing multiple roles across the delivery value chain,” says William Tokash, Senior Research Analyst with Navigant Research. “As a result, they can drive down costs, enable financing innovation, and establish customer access advantages relative to their peers.”

Grid benefits from distributed-scale ESSs are driving the development of software platforms that can integrate distributed generation and building controls along with storage to reduce demand charge. These software platforms can also serve as virtual power plants (VPPs) capable of analyzing, controlling, and optimizing a portfolio of these ESSs.

As power market rules mature, according to the report, these types of VPPs are expected to emerge as a necessary integration solution for distributed energy resources.

An executive summary of the report is available for free download here.

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