ENERGY STORAGE

US grid-scale energy storage deployment doubles

US grid-scale energy storage installations reached 7.9GWh last year, up from 3.9GW in 2022, with deployment expected to increase 30 per cent in 2024

BEN COOK

March 27, 2024

  • US grid-scale storage installations reached 7.9GWh last year, up from 3.9GW in 2022
  • In Q4 2023, US grid-scale deployment exceeded 3GW in a quarter for the first time
  • California leading US state for storage deployment

The amount of grid-scale energy storage deployed in the US almost doubled in 2023, data from Wood Mackenzie shows. Grid-scale installations reached 7.9GWh last year, up from 3.9GW in 2022, an increase of 99 per cent. The dramatic increase in installations was partly due to record levels of deployment in Q4 2023 – US grid-scale deployment in the quarter totalled 3.9GW, a 358 per cent increase on the same period the previous year and the first time grid-scale deployment has ever exceeded 3GW in one quarter.

In the record-breaking Q4, California and Texas installations accounted for 77 per cent of the additions, measured in terms of MW. California also dominated new additions in terms of MWh, with a 56 per cent share that represented a total of 6,593 MWh. Wood Mackenzie said the 11,769 total MWh brought online in Q4 2023 was a 105% increase from Q3, shattering that previous record of 5,728 MWh.

In October 2023, the California Energy Commission (CEC) highlighted new data that showed the state had more than 6.6GW of battery storage online, enough electricity to power 6.6 million homes for up to four hours. The CEC said at the time that California had increased battery storage by 757 per cent in only four years (see graph below).

Source: California Energy Commission

California’s position as one of the most advanced regions in the world in terms of the deployment of battery storage was further emphasised at the beginning of this year when the Edwards & Sanborn solar-plus-storage project in California went fully online, the project has 875MWdc of solar PV and 3,287MWh of battery energy storage, meaning the US state is home to the largest battery storage system in the world.

However, as the CEC has acknowledged, California is still way off its target for battery storage deployment. The state projects that 52GW of battery storage will be needed by 2045, which means it has only achieved 13 per cent of its target (see chart below).

Source: California Energy Commission

Across all segments – that is, grid-scale, community scale, commercial and industrial (CCI) and residential – US storage deployment increased 90 per cent in 2023 to 8.7GW.

California is leading the way in the residential segment and, in Q4 2023, became the first state to install more than 100MW in a single quarter. California installed 48 per cent more MW of residential storage in Q4 2023 than the record set in Q3 2023.

With regard to the community-scale, commercial and industrial (CCI) segment, Wood Mackenzie said growth “remains stagnant and highly concentrated”. Massachusetts had its best quarter in two years, deploying 9.7 MW of CCI storage, however it failed to grow in annual installations between 2022 and 2023. New York was the largest CCI storage market for the second quarter in a row – it deployed 12MW of CCI storage, slightly more than California’s total. Despite this, New York also failed to grow deployment year-on-year.

What does the future hold for US storage deployment? Wood Mackenzie has predicted that cumulative deployed battery storage capacity will hit 50GW in 2025, reaching just under 100GW by 2028. With a total of 8.7GW of new battery storage deployed across all segments in the US in 2023, it is anticipated that deployment will increase by 30 per cent this year. However, growth is expected to flatten in 2025 and 2026 as project capacity is “pushed into later years of the forecast largely due to early-stage development challenges such as permitting and siting difficulties, and interconnection queue timelines”, Wood Mackenzie concluded.