US energy storage numbers hit record in first quarter
The first quarter of 2019 was the best ever quarter for U.S. energy storage, according to the U.S. Energy Storage Monitor.
The United States saw 148.8 megawatts of energy storage deployed in the first quarter, breaking the previous record set in the fourth quarter of 2018 by six percent. Further, the first quarter numbers mark a 232 percent increase year-over-year.
“These first-quarter numbers indicate that 2019 will be a banner year for energy storage in the United States,” said Kelly Speakes-Backman, CEO of the U.S. Energy Storage Association (ESA), which produced the data along with Wood Mackenzie Power & Renewables. “It’s become clear that states are already unlocking the potential of storage by passing legislation and creating regulatory frameworks to encourage energy storage deployment. The industry is responding by developing storage projects and creating jobs in their states.”
California led the U.S. storage market in in the first quarter, while Arizona, New Jersey, and New York also posted strong growth. State level regulatory activity, including the Value of Distributed Energy Resources (VDER) program in New York State and the Solar Massachusetts Renewable Target (SMART) Program in Massachusetts, position these states for substantial growth in the next few years.
“Based on activity this quarter, we’re keeping an eye on New York state,” Wood Mackenzie Power & Renewables senior energy storage analyst Brett Simon said. “When the New York bridge incentive opened at the end of April 2019, the first block of the retail incentive was fully subscribed in a little over a week, showing how much pent up storage demand there was in New York. New York also updated its VDER program to guarantee greater certainty for compensation under the program’s value stack, which is a boon for energy storage projects in the state.”
The study also found that 271.1 MWh of storage was brought online in the United States in the first quarter, a 110 percent rise year-over-year.
Wood Mackenzie expects U.S. energy storage deployments to double in 2019 compared to 2019 levels.
