The central findings of our LCOS analysis include: 1) selected energy storage technologies are
increasingly attractive for a number of specialized power grid uses, but none are yet cost-competitive
for the transformational scenarios envisioned by certain Alternative Energy advocates; 2) Industry
participants expect costs to decrease significantly over the next five years, driven by scale and related
cost savings, improved standardization and technological improvements, supported in turn by
increased demand as a result of regulatory/pricing innovation, increased renewables penetration and
the needs of an aging and changing power grid in the context of a modern society; and 3) as the
energy storage market continues to evolve, several potential sources of revenue available to energy
storage systems have emerged; ultimately, the mix of available revenue streams for a particular
energy storage system varies significantly across geographies.
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