Installations of grid-scale power storage throughout the U.S. proceed to surge, with three states—California, Arizona, and Texas—liable for 85% of that progress within the second quarter of this yr.
Information from the American Clear Energy Affiliation (ACP) and Wooden Mackenzie, launched October 1 within the group’s newest Power Storage Monitor report, confirmed 3,011 MW and 10,492 MWh of power storage was deployed within the April-through-June interval. The report stated each market section for storage grew year-over-year, with grid-scale storage deployments at 2,773 MW and 9,982 MWh. Residential storage, displaying an uptick as the necessity for house charging of electrical autos and backup energy grows, jumped 12% to 423 MWh. Installations of neighborhood, industrial and industrial (CCI) storage have been up 61% from the second quarter of 2023, to 87 MWh.
“Power storage is turning into a mainstay of the ability grid, delivering a extra resilient and reasonably priced grid,” stated John Hensley, SVP of Markets and Coverage Evaluation for ACP. “Further storage capability throughout U.S. markets helps to supply a cheap and dependable resolution to critical issues corresponding to rising power demand, a well timed want for extra general capability, and extra unstable and excessive climate occasions. To maintain the pattern going, it’s necessary to seek out options for improvement challenges corresponding to prolonged interconnection queues and allowing and siting.”
“This quarter confirmed huge progress in comparison with year-ago ranges and the grid-scale section continues to be the primary driver,” stated Vanessa Witte, senior analyst with Wooden Mackenzie’s power storage crew. “Group carried out strongly as properly. And whereas residential did increase, it was nonetheless a considerably sluggish quarter as California’s meteoric progress faltered, mixed with low installations in Hawaii and Puerto Rico, which proceed to be affected by incentive adjustments.”
Progress Ought to Proceed
Wooden Mackenzie’s five-year outlook for the U.S. power storage market exhibits complete U.S. storage deployments will develop 42% this yr in comparison with 2023 ranges, however capability additions will stage out. The group stated deployments could have a mean annual progress price of seven.6% between 2025 and 2028. Throughout all segments, the power storage business is predicted to deploy 12.8 GW/ 36.9 GWh this yr.
The grid-scale section is projected to extend 32% year-over-year with 11 GW/32.7 GWh deployed by year-end, and 62 GW cumulatively from 2024-2028, in accordance with the report. The report additionally stated that 12 GW of distributed storage capability can be put in over the following 5 years, with the residential section accounting for 10 GW of these deployments, or greater than 80%, between this yr and 2028.
The CCI section is forecast to put in 2.5 GW of storage between 2024 and 2028, a slight discount from earlier forecasts.
“Progress flattens in 2025 and 2026 as mission capability is pushed into later years of the forecast largely as a consequence of early-stage improvement challenges,” stated Witte. “The CCI section continues to expertise excessive obstacles to progress together with the complexity of growing these tasks and the restricted availability of monetary worth streams.”
—Darrell Proctor is senior editor for POWER (@POWERmagazine).
