The latest quarterly US Energy Storage Monitor, produced by the national Energy Storage Association and analysis firm Wood Mackenzie Power & Renewables, has predicted annual deployments will reach 7.3GW by 2025.
A more than 14-fold increase is forecast, from 523MW recorded in 2019, with the “sharp scale-ups” both regionally and nationally to be driven primarily by a combination of “utility procurements and the accelerating residential market,” the report claims.
Over the next two years alone, the first really big utility procurements of energy storage are set to come online, causing an expected trebling of the market volume this year and then more than doubling again in 2021.
While supply constraints noted in the front-of-meter (utility grid-connected) market are pushing some projects back from the beginning of this year to 2021 or later, even during the period that these delays were beginning to be experienced, “the scale of planned large-scale system planning has surged,” according to Wood Mackenzie analysts.
“The U.S. energy storage market has shown rapid growth over the past decade, moving from pilot to commercial scale, but perhaps most remarkable is the geographic breadth and diversity of its success,” the report said, adding that energy storage is proving a range of services nationwide that shows it has “found a foothold”.
7.2GW annual market roughly equates to US$7.2 billion
These services include grid-level storage delivering ancillary services in territories including the New England ISO system operator service area, PJM Interconnection, Texas’ ERCOT, CAISO in California and others. Meanwhile, storage paired with solar is on the increase, as is the deployment of energy storage in lieu of more expensive transmission and distribution network upgrades.
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