Navigant Research Report Finds Distributed Energy Storage System Developers Must Ensure Projects Have Guaranteed Revenue to Attract Debt and Equity Companies

Developers should focus on operational efficiencies to remain
competitive in expanding market

BOULDER, Colo.–(BUSINESS WIRE)–lt;a href=”https://twitter.com/hashtag/DER?src=hash” target=”_blank”gt;#DERlt;/agt;–A new report from Navigant
Research explores the fundamentals and challenges of financing
distributed energy storage systems (DESSs).

DESSs are inherently flexible, can now be deployed rapidly, can generate
multiple value streams, and have the potential to provide multiple grid
and customer benefits. In today’s DESS market, significant competition
is emerging among project developers in search of commercial debt
lending and equity investment partners. Click
to tweet: According to a new report from @NavigantRSRCH,
to seize a competitive edge, DESS developers must ensure their projects
have a strong level of guaranteed revenue to increase the likelihood of
attracting potential debt and equity companies.

“DESS markets are growing due to several factors, including
breakthroughs in adjacent digital technologies such as artificial
intelligence, blockchain, and predictive analytics that are facilitating
the emergence of DESSs as a key enabling technology for aggregated
distributed energy resources (DER) solutions,” says Ricardo F.
Rodriguez, research analyst with Navigant Research. “These solutions are
propelling DESS projects toward economic viability and improved
bankability.”

According to the report, as battery prices and balance-of-system (BOS)
costs decline, DESS developers need to focus on operational efficiencies
to remain competitive. Consequently, new market participation models
that use storage’s inherent flexibility to capture multiple value
streams are attracting increasing attention. Stakeholders are also
focusing on government incentives that enhance the bankability of DESS
projects and enable DESS project value chain participants to reduce
costs and drive better project performance.

The report, Distributed
Storage Financing Innovations Give Vendors an Edge in the Market,
explores the fundamentals and challenges of financing DESSs. The study
examines innovative DESS project financing asset classes, new market
participation and government policies that improve the bankability of
DESS projects, and solar PV plus storage power purchase agreements
(PPAs) and holistic energy management. It also provides guidance for
DESS stakeholders on implementing lean practices, taking advantage of
real-time integrated control software, and lowering project costs by
partnering with engineering, procurement, and construction (EPC)
companies. An Executive Summary of the report is available for free
download on the Navigant
Research website.

About Navigant Research

Navigant Research, the dedicated research arm of Navigant, provides
market research and benchmarking services for rapidly changing and often
highly regulated industries. In the energy sector, Navigant Research
focuses on in-depth analysis and reporting about global clean technology
markets. The team’s research methodology combines supply-side industry
analysis, end-user primary research and demand assessment, and deep
examination of technology trends to provide a comprehensive view of
clean, intelligent, mobile, and distributed energy. Additional
information about Navigant Research can be found at www.navigantresearch.com.

About Navigant

Navigant Consulting, Inc. is a specialized, global professional services
firm that helps clients take control of their future. Navigant’s
professionals apply deep industry knowledge, substantive technical
expertise, and an enterprising approach to help clients build, manage
and/or protect their business interests. With a focus on markets and
clients facing transformational change and significant regulatory or
legal pressures, the Firm primarily serves clients in the healthcare,
energy and financial services industries. Across a range of advisory,
consulting, outsourcing, and technology/analytics services, Navigant’s
practitioners bring sharp insight that pinpoints opportunities and
delivers powerful results. More information about Navigant can be found
at navigant.com.

* The information contained in this press release concerning the
report, Distributed Storage Financing Innovations Give Vendors an
Edge in the Market, is a summary and reflects Navigant Research’s
current expectations based on market data and trend analysis. Market
predictions and expectations are inherently uncertain and actual results
may differ materially from those contained in this press release or the
report. Please refer to the full report for a complete understanding of
the assumptions underlying the report’s conclusions and the
methodologies used to create the report. Neither Navigant Research nor
Navigant undertakes any obligation to update any of the information
contained in this press release or the report.

Contacts

Navigant Research
Lindsay Funicello-Paul
+1.781.270.8456
lindsay.funicello.paul@navigant.com