Storage-plus power purchase agreements (PPAs) are less expensive than the levelized cost of energy for combined cycle natural gas in the U.S.
Lithium-ion batteries are one of the main drivers in the growth of the utility-scale energy storage market.
There is a growing expectation that electric utilities increase their investment in storage-plus renewable energy projects as power purchase agreement prices continue to fall and adoption expands.
Due to the advancements in lithium-ion battery technology, PPA prices for projects combining energy storage and renewable resources are expected to continue declining as their adoption expands.
"In 2018, storage-plus made its first shift from the validation and first-mover adopters to diffuse adoption led by utilities," said Alex Eller, senior research analyst at Navigant Research and one of the report's authors. "The accurate valuing and positioning of storage-plus by utilities will continue to drive the market in coming years."