Report: Value-Added Services Help Energy Storage Industry Reduce Risks
A new report from Navigant Research discusses how energy storage value-added services (VASs) have evolved and how the storage industry has grown by using VASs to reduce customer risks.
Because potential customers are generally unfamiliar with energy storage system (ESS) technology, VASs are required for projects to be considered bankable by customers and investors. These services shift technological and financial risk for project performance from customers to the battery hardware providers and systems integrators that design and build an ESS.
“VASs include operations and maintenance (O&M), warranties, and performance guarantees, which are collectively fundamental components of any project proposal,” says Alex Eller, senior research analyst at Navigant Research.
To stay competitive in this market, Navigant Research recommends ESS providers continue to innovate on their existing VASs and maintain flexibility in their offerings to design a VAS program to suit the needs of their customers. Vendors of emerging technology (such as flow batteries) need to offer VASs that can reduce the perceived risk to customers by taking on the on the performance risk themselves.
The report, Energy Storage Value-Added Services Reduce Risk and Unlock Growth Opportunities, discusses how energy storage VASs have evolved and how the storage industry has grown by using VASs to reduce customer risks.
Source: energymanagertoday
