by Brianna Crandall — March 26, 2018 — If you have found it difficult to justify the cost of uninterruptible power supply (UPS) technology for anything other than mission-critical operations, find out more about the latest UPS application in this new report from Navigant Research. The report analyzes the market for distributed energy storage systems (DESSs) with UPS capabilities for non-mission-critical operations (UPSX).
Mission-critical operations
Commercial and industrial (C&I) facilities managers (FMs) with mission-critical operations such as data centers, telecom operations, financial services centers, and hospitals deploy uninterruptible power supply (UPS) systems to provide continuous electrical service with high power quality, explains Navigant Research. Historically, mission-critical UPS systems have used redundant, valve-regulated lead-acid (VRLA) battery systems.
Given the risks associated with the failure of mission-critical UPS systems, these C&I FMs are conservative in nature. They have been slow to adopt new or untested UPS solutions using lithium ion (Li-ion) or other advanced batteries, even if these new solutions could improve the total cost of operation.
Non-mission-critical operations
However, commercial and industrial (C&I) FMs who do not have mission-critical operations have historically been hesitant to deploy UPS systems to address electrical service outages due to the high costs associated with investing in this resiliency technology. These C&I FMs view electrical service outages and the resulting financial impacts of the associated downtime as an unmanageable cost of doing business.
This Navigant Research report focuses on the emergence of a new UPS solution (UPSX) that leverages behind-the-meter commercial and industrial distributed energy storage system (DESS) technology to provide grid ancillary services to utilities and competitive markets, as well as electrical demand charge reduction and resiliency to commercial and industrial FMs.
These DESSs with UPS capabilities, referred to as UPSX, are poised to mitigate the impact of electrical service outages for non-mission-critical C&I operations. According to the new report, the annual global market for the deployment of UPS service from distributed energy storage (UPSX) is expected to reach $2.7 billion by 2026. The report provides an overview of market issues and revenue forecasts through 2026.
William Tokash, senior research analyst with Navigant Research, explains:
Many C&I facilities with non-mission-critical operations view electrical service outages as an unmanageable cost of doing business due to the high costs of traditional UPS service systems. Navigant Research anticipates the emergence of a new UPS service option for this sector will leverage DESS and financing innovation to address this unmet need.
According to the report, stakeholders now focused on the DESS applications market will begin to add UPS system capabilities to the design and operation of their distributed energy storage systems. In turn, these UPSX capabilities will begin to address the unmet electrical outage mitigation needs of commercial and industrial customers in non-mission-critical sectors, while offering an improved business case, increased grid reliability, and financing innovation.
The report, Advanced Energy Storage for UPS Applications: Advanced Lead-Acid, Lithium Ion, Flow, and Other Battery Chemistries for Non-Mission Critical C&I UPS System Applications: Global Market Analysis and Forecasts, examines the drivers, barriers, and regional trends affecting the deployment of UPSX. The study provides an analysis of the market issues, including drivers, barriers, and geographic trends, associated with UPSX solutions.
Global market forecasts for UPSX revenue, segmented by region, building type, and technology, extend through 2026. The report also examines the key technologies related to UPS systems, as well as the competitive landscape. An Executive Summary of the report is available for free download on the Navigant Research Web site.
