Energy storage will disrupt transmission and distribution investments
Energy storage systems that allow for the deferral of T&D upgrades allow for a more efficient deployment of capital to meet evolving grid needs and can enable the development of new business models.
Grid operators around the world continue to recognize the benefits of energy storage technologies, and one of the most intriguing applications is the ability to defer investments in conventional transmission and distribution (T&D) infrastructure.
Energy storage systems (ESSs) providing T&D upgrade deferral can be a disruptive force in the industry as they allow for a more efficient deployment of capital to meet evolving grid needs and can enable the development of new business models. T&D upgrade deferral ensures that electricity lines, substations and other equipment have enough bandwidth to handle peak demand. Navigant Research’s recent report, Energy Storage for Transmission and Distribution Upgrade Deferral, takes an in-depth look at both the opportunities and challenges in this market.
T&D systems adapt to end-user needs and the placement of generation assets. This is becoming increasingly complex because of changing demand patterns, congestion due to the development of renewable generation in remote areas, and the desire to improve the reliability of electricity supply for customers that have a growing number of alternative options to meet their electricity needs…..