Energy storage hits record level in third quarter
A record 476 megawatts (MW) of storage were deployed in the third quarter, a 240 increase over the previous high, according to the latest US Energy Storage Monitor report from Wood Mackenzie and the U.S. Energy Storage Association’s (ESA).
The increases were across the board, but the most dramatic rise came in front-of-the-meter (FTM) storage procurements, particularly in California. The FTM segment grew to 400 MW and 578 MWh in the third quarter, surpassing previous 133 MW and 296 MWh records for this sector. To further illustrate the meteoric growth, FTM storage installed in the third quarter was higher than all other segments during any other quarter over the past 7 years.
“Energy storage deployments continue to grow, despite the economic downturn and COVID-related slowdowns,” Kelly Speakes-Backman, U.S. Energy Storage Association CEO, said. “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.”
The residential storage market also had a good quarter, growing for the sixth straight quarter. The residential segment hit 52 MW and 119 MWh in the quarter.
“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 1. Considering the scale of systems anticipated for 2021, we do not expect this record, as remarkable as it is, to stand for long,” Dan Finn-Foley, Wood Mackenzie Head of Energy Storage, said.
Overall, 736.6 MWh of energy storage was deployed in the United States in the third quarter, up 179 percent from the previous year’s third quarter. Also, 475.9 MW of storage was brought online in the United States in the quarter, up 373 percent year over year.
The U.S. battery energy storage market is set to grow from 1.2 GW in 2020 to approximately 7.5 GW (and 26.5 GWh) in 2025. This growth will be driven primarily by large-scale utility procurements with solar-paired storage accounting for a large majority of these installations.
