Market Analysis: Utility Attitudes Toward Energy Storage Technologies

This IDC Energy Insights report focuses on utility attitudes and perceptions toward emerging energy storage technologies, including Lithium-ion batteries, NaS batteries, flow batteries, flywheels, and compressed air energy storage. Based on in-depth interviews with utility and energy sector executives, findings indicate that utilities are intrigued by the evolving capabilities of energy storage technologies but that opinions about the commercial readiness of specific technologies vary. The primary factor governing future purchases of energy storage technologies is cost reduction.

According to Sam Jaffe, IDC Energy Insights Senior Research Analyst, "There is a place for all energy storage technologies, from Lithium-ion batteries to flywheels, in the utility market. But utility interest and enthusiasm for specific technologies varies markedly due to the perceived technical and economic readiness associated with each type of energy storage system."