Enel X ranked as one of 3 top systems integrators in energy storage worldwide
Based on evaluation of strategy and execution, Guidehouse Insights Leaderboard report awards company close to best marks in “behind-the-meter” energy storage business
Published on Monday, 13 July 2020
Enel X has been ranked one of the three leading global systems integrators in battery energy storage, garnering among the highest marks for both strategy and execution.
In its Leaderboard report, market intelligence and advisory firm Guidehouse Insights graded 15 leading systems integratorsin the energy storage business for strategy and execution. The specific sector Guidehouse looked at was the “behind the meter” storage market for commercial and industrial companies, a segment it expects to exceed 15.5 gigawatts with revenue of $16.5 billion by 2029. Behind the meter, or BTM, is a smaller size storage system physically installed “behind the meter” of industrial facilities and able to provide energy to the network. A surplus deriving from a distributed energy asset can be fed back into the grid, generating revenue for the owner, while a battery storage system retains power to be released when needed.
“The number of cities, states, and businesses committed to carbon reduction goals is swelling and the demand for onsite generation of renewable energy is mounting,” according to the Guidehouse Insights Leaderboard. Distributed energy storage, or DES, “is poised to take a leading role in the new energy paradigm shift, delivering cost savings, grid support, and other bottom-line benefits.”
To reach its verdict on strategy, Guidehouse, a premier data and consulting firm that focuses on emerging technologies for regulated industries, looked at vision, partnerships and geographic reach, as well as the way a company delivers its unique value proposition. On the final point, known as go-to-market strategy, companies scored higher for engaging in activities such as direct project development, a multi-channel sales approach, offering so-called no-money-down financing and which have acquired customer data advantages.
“As the DES industry continues to grow, Enel X is expected to remain a leading player, especially given the company’s access to customer data,’’ Guidehouse said in the report. “Enel X has added leading edge capabilities across portfolio advisory and load management and optimization by adding flexibility technologies like energy storage, DR, and building energy management to its offerings,” Guidehouse said, referring to demand response capabilities.
For execution, the consultancy rated players’ abilities in sales, marketing, and distribution, product performance, product portfolio, pricing, and what it calls staying power.
This is a gauge that evaluates a company’s financial resilience, giving a higher score to companies that are part of a large, well-funded group.
Key enabling technology
Drawing on advances in artificial intelligence, the blockchain and predictive analytics, battery energy storage is emerging as a key enabling technology in so-called distributed energy resources solutions, where electricity generation takes place at or near the end user. That in turn is helping to make storage projects economically viable and boosting their ability to attract funding from leading financial institutions, according to Guidhouse.
Thanks to its size, the expertise it has gained through decades of experience and the muscle – operational and financial -- that comes from being part of the Enel Group, Enel X is able to meet customers’ individual requirements with customized solutions. What might be standalone battery storage on one site, on another can be paired with a solar panel array or a microgrid, providing greater flexibility and control.
It all adds up to bigger bill savings, sustainability and resilience, obtained through a variety of business models, also tailored to customers’ needs. These include leasing, power purchase agreements – both straight and hybrid – benefit sharing arrangements and spot sales, depending on customers’ risk appetite.
On top of this, and in contrast with other leading players, Enel X is a global leader in demand response programmes, with a 12% share of the market worldwide and managed capacity of 6.3 gigawatts. As Guidehouse noted, this allows the company to flank the storage solutions it offers its customers with access to national grids and, with that, the possibility of the client being paid for helping to respond to peaks in either the supply or demand for electricity from the network.