Grid Storage under the Microscope: Using Local Knowledge to Forecast Global Demand

March 14, 2012 | State of the Market Report

Many emerging grid storage technologies are unproven and pose high capital costs compared to conventional generation, transmission, and distribution grid infrastructure. There are, however, a handful of regions around the globe where grid storage is cost effective for specific applications – but the market is highly fragmented and dependent on several key regional drivers. The lack of clear historical market trends makes it necessary to understand the local factors that are driving massive growth in a relatively small grid storage market. Lux evaluated the cost effectiveness of eight grid storage technologies in six applications throughout 44 countries, including all 50 U.S. states, and found that the global demand for grid storage will reach $113.5 billion by 2017. Lux compared the impact of renewable portfolio standards, the pay-for-performance ruling, and government subsidies on global demand to identify the technologies, applications, and regions with the most promise for grid storage.

Coverage Areas

  • Energy Storage
  • Future Grid
  • Owning the Energy Transition

Table of Contents

  • Executive Summary
  • Landscape
    The demand for grid storage has the potential to reach $113.5 billion by 2017, but varies dramatically regionally; knowledge of local market conditions is key to identifying promise.
  • Analysis
    Dynamic global policies have dramatically different impacts on the demand for grid storage.
  • Outlook
  • Endnotes
  • Appendix

Lead Analyst

Brian Warshay, LEED AP
Research Associate


Steven Minnihan
Matthew Feinstein

About Lux Research

Lux Research is a leading provider of tech-enabled research and advisory solutions, helping clients drive growth through technology innovation. A pioneer in the research industry, Lux uniquely combines technical expertise and business insights with a proprietary intelligence platform, using advanced analytics and data science to surface true leading indicators. With quality data derived from primary research, fact-based analysis, and opinions that challenge traditional thinking, Lux clients are empowered to make more informed decisions today to ensure future success.

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