Firms Should Have Building-Scale Battery Storage On Their Technology Road Map For Facilities Optimization As Investments In Battery Storage Accelerate
Battery storage deployed in buildings is an exciting technology poised to disrupt facilities optimization strategies. Battery storage in buildings helps businesses manage electricity produced by renewable generation, eliminate operational disruption from power outage and can significantly reduce peak demand charges - which in some US states can account for up to 60% of a firm’s utility bill.
In July 2017, the UK government released a £246 million investment plan into battery technology as part of the government’s Industrial Strategy. The program involves a series of competitions with the objective to make the UK a world leader in the design, development and manufacture of batteries. We are also witnessing significant venture capital investments with almost half a billion ($480 million) invested into energy storage companies in the first half of 2017 – twice as much as last year.
While most investments are still in batteries for the automotive and utility sector, firms providing battery storage for commercial use are starting to see an increase in investment as well. For example, energy storage firms such as Stem received funding in excess of $350 million in 2016 and Green Charge, founded in 2009 and acquired by Engie in 2016, had raised over $56 million in two rounds of funding by 2014.
Building-scale battery storage presents important energy-saving potential for businesses from lower demand charges and makes on-site renewable generation more economically interesting. But it gets a lot less press than batteries for electric vehicles or to stabilise the grid. With significant investments continuing to feed the market, firms must keep this technology on their roadmap for future investments in facilities optimization technologies.
To learn more about other innovative technologies that will disrupt facilities optimization management check out our recent report - Tech Roadmap For Facilities Optimization Technologies.