Energy Storage Market in the US Breaks Records in Third Quarter: Report

A new report has revealed that 476  MW of energy storage capacity were  deployed in the US in the third quarter of 2020, setting a new record

A new report has revealed that 476 megawatts (MW) of storage were deployed in the US in the third quarter of 2020, an increase of 240 percent over the previous high, set last quarter. As noted in the latest ‘US Energy Storage Monitor’ by Wood Mackenzie and the US Energy Storage Association (ESA), this new record for storage is not an anomaly but rather a sign of things to come as front-of-the-meter (FTM) storage procurements, particularly in California, grow dramatically in number and size.

While the residential segment grew as well, the major growth was in the FTM market segment. Nearly 400 MW and 578 MWh were deployed in Q3, surpassing previous records of 133 MW and 296 MWh for this sector. More FTM storage was installed in Q3 than was installed across all segments during any other quarter over the past seven years.

Despite relatively low durations for systems deployed this quarter, FTM MWh deployments beat the previous record set in Q1 2017 by nearly 200 percent.  

“Energy storage deployments continue to grow, despite the economic downturn and COVID-related slowdowns,” said Kelly Speakes-Backman, US Energy Storage Association CEO. “The signs are pointing toward an unprecedented increase in energy storage in the coming months, moving us closer toward achieving our 100 GW by 2030 vision. With continued policy support and regulatory reform at the state and federal levels, energy storage is poised to continue this trajectory and enable a more resilient, efficient, sustainable, and affordable electric grid for all.”

“These eye-catching deployment totals represent only the beginning of a long-anticipated scale up for the US storage market. Massive price declines and efforts to ensure eligibility have set the stage for exponential growth, and the curtain has only just risen on Act One. Considering the scale of systems anticipated for 2021 we do not expect this record, as remarkable as it is, to stand for long,” added Dan Finn-Foley, Wood Mackenzie Head of Energy Storage.

The report details that the residential storage market has grown steadily for six quarters in a row, hitting 52 MW (119 MWh) in Q3 2020, with resilience as the key driver.

“Although the residential storage market has hovered at around 7,000 deployments per quarter in 2020, the sector is now set to expand by 6x through 2025, with increasingly active markets in New York, Massachusetts, PJM, Texas and Florida, among other states.

“Potential upside from landmark FERC Order 2222 could start to become clear next year as market operators and utilities make plans for implementation. These decisions will impact where and how quickly storage companies will be able to center grid services and the wholesale market in their strategic growth,” said Chloe Holden, Wood Mackenzie Energy Storage Analyst.

Massachusetts continued its strong showing in thenon-residential segment through its SMART program, topping Hawaii’s deployment totals to take second place in the segment. Non-residential deployment has slowed in recent quarters, adding around 30 MW each quarter of this year, in contrast with the segment’s 40+ MW quarterly highs in Q1 and Q4 of 2019.

The US battery energy storage market is set to grow from 1.2 GW in 2020 to nearly 7.5 GW (and 26.5 GWh) in 2025, driven primarily by large-scale utility procurements. Solar-paired storage will account for a large majority of these installations, and potentially the vast majority, as developers aim to capture value from the Investment Tax Credit.

"Want to be featured here or have news to share? Write to info[at]saurenergy.com
Ayush Verma

Ayush Verma

Ayush is a staff writer at saurenergy.com and writes on renewable energy with a special focus on solar and wind. Prior to this, as an engineering graduate trying to find his niche in the energy journalism segment, he worked as a correspondent for iamrenew.com.

      SUBSCRIBE NEWS LETTER
Scroll