McKinsey: Cheaper batteries present imminent threat of load defection for utilities
July 5, 2017
Continued energy storage cost declines present a growing threat of disruption for utility business models, a new study from McKinsey & Co. finds.
The study reports energy storage is already economical for many commercial customers at today’s prices and that with the paring back of incentives such as net metering in many states, combining solar power with energy storage is beginning to be attractive for some households.
Continued cost declines are moving energy storage from niche applications, such as grid balancing, to broader uses such as replacing conventional power generators for reliability, providing power-quality services, and supporting renewables integration, according to McKinsey.