As companies and states pursue aggressive decarbonization goals, the pressure to find a cost-effective storage solution is mounting.
A growing number of companies are deploying on-site energy storage, usually paired with solar. Commercial and industrial behind-the-meter storage just had its best quarter yet, reaching 44.9 megawatts of capacity in Q1.
But C&I buyers aren’t driving the growth in storage. Utilities are, with massive energy storage deployments and announcement becoming more common. In fact, the United States just became the world’s largest grid-connected energy storage market, and researcher Wood Mackenzie’s Energy Storage Monitor shows that Q1 2019 was the best quarter for deployments, with 148.8 megawatts coming onto the grid.
Projections show utility energy storage deployments are just getting started; they’re expected to double in 2019 and triple in 2020.
Utility energy storage is growing like gangbusters
Utilities have been announcing 100+ MW energy storage plans at an impressive clip over the last six months:
Southern California Edison selected a portfolio of energy storage projects in April, with a collective capacity of 195 MW, deciding against a 262-MW natural-gas peaker plant to fill the same function.
Reason: Falling prices for energy storage and the rise of policy that prioritizes low-carbon energy options.
Pacific Gas & Electric (PG&E) gained approval from the California Public Utilities Commission for four energy storage projects, totaling 567.5 MW, to replace a gas plant in South San Francisco late last year.
Reason: A policy priority from regulators to shift from natural gas to clean energy sources for flexible capacity.
Arizona Public Service (APS) disclosed in February that it plans to install 850 MW of energy storage by 2025 (the single largest storage procurement from a utility to date).
Reason: A policy that sought to grow capacity during the peak demand period, between 3 and 9 pm.
Eversource is considering a $7 million energy storage backup system for Westmoreland, a small town in western New Hampshire that suffers from frequent power outages.
Reason: Energy reliance, as the town relies on just one power line (and no backup source), which is susceptible to falling tree branches in storms.
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