Energy Storage Association seeks federal assistance amid COVID-19 impact

Energy storage in the United States has taken a hit since the spread of COVID-19, the U.S. Energy Storage Association (ESA) said in a survey released this week, with 63 percent of industry respondents expecting a decrease in revenues.

Approximately 33 percent expect reductions of 20 percent or more, all because of customer delays or cancellations, difficulty in obtaining equipment or supplies, and delays in both permitting and approval caused by the crisis. The figures, which included responses from 101 representatives across the storage industry, were focused on the year’s second quarter. While the industry as a whole predicted these unsettling ends, for the manufacturing segment, things appear even bleaker, with revenue reductions expected to be more widespread and more profound than the industry segment.

“The COVID-19 pandemic has impacted the energy storage industry tremendously,” ESA CEO Kelly Speakes-Backman said. “While we still anticipate year-over-year growth, it is clear our industry is suffering with immediate and significant risks of workforce reductions and economic damage. These delays upend grid reliability and resilience efforts, just as we enter fire and hurricane season, and as states, towns, and utilities are beginning to incorporate energy storage systems as backup power to prevent power system disruptions for critical healthcare facilities. As such, ESA is actively seeking immediate relief from Congress and the Administration to relieve the financial stresses on our members and the industry, which represents more than 60,000 people, caused by the virus.”

Seventy-five percent of respondents indicated they have no intention of reducing employment at this time. For the quarter of respondents that are likely to cut their workforce, many expect to let go as much as one-fifth of their employees.

The ESA said the survey indicates a deep, but likely brief, revenue downturn that is likely in this quarter. If conditions do not rapidly improve, it warns that significant workforce reductions are expected after the end of the second quarter.

“We are anticipating that COVID-19 will result in project delays for those that were slated for deployment this year,” Daniel Finn-Foley, head of energy storage at Wood Mackenzie Power and Renewables, said. “We assess downside risk at about 20 percent megawatt (MW) reduction in front-of-the meter projects and a 32 percent MW reduction in behind-the-meter deployments this year, compared to our earlier projections. Depending on how significantly projects are delayed the impacts of this virus could result in hundreds of millions of dollars’ worth of capacity moved from 2020 into 2021 or out further towards 2025.”