The quarter confirmed sturdy grid-scale and residential storage demand, regardless of continued provide chain challenges
WASHINGTON DC, December 15 2022 – The US grid-scale vitality storage market put in a file 4,733 megawatt-hours (MWh) within the third quarter of 2022, surpassing the earlier quarterly excessive of 4,598 MWh in Q1 of 2021, based on a brand new report launched immediately. On a single cost, this quantity of battery storage may energy 150,000 US houses a day.
In keeping with the American Clear Energy Affiliation (ACP) and Wooden Mackenzie’s newest US Power Storage Monitor report launched immediately, grid-scale storage deployments are closely depending on California and Texas, accounting for 96% of the entire. -installed capability this quarter.
“Demand for the grid-scale and residential storage segments continues to extend, regardless of rising prices and remaining provide chain challenges,” mentioned Vanessa Witte, senior analyst in Wooden Mackenzie’s vitality storage workforce. “Put in capability is anticipated to greater than double subsequent 12 months, pushed by new grid-scale undertaking bulletins and elevated residential and non-residential quantity in CA because of the introduction of group photo voltaic program and NEM 3.0.”
In keeping with the report, the entire forecast quantity between 2022-2026 in all segments has elevated by 109% quarter-over-quarter, and on this timeframe the US storage market will set up virtually 65 gigawatts (GW ) general, with accounting for grid-scale installations. for 84% of that capability.
“Demand for vitality storage is at an all-time excessive, pushed by continued greater vitality costs, state decarbonization mandates, and Inflation Discount Act incentives,” mentioned Jason Burwen, Vice President of Power Storage of the American Clear Energy Affiliation. “California’s reliance on vitality storage to satisfy file peak demand this September exhibits why it’s completely vital that policymakers and grid operators take away obstacles to produce to make sure reliability. -growth of the US trade is more and more depending on the provision of transmission and well timed entry to the grid.”
Residential storage had one other file quarter, with 400 MWh put in, surpassing the earlier quarterly file of 375 MWh in Q2 2022. California, Puerto Rico, Texas, and Hawaii have been leaders in Q3 for in residential installments. Wooden Mackenzie tasks that this share will rise to 2.2 GW by 2026.
Neighborhood, industrial, and industrial storage deployments have been flat for a consecutive quarter, with 56.6 MWh put in in Q3. Nonetheless, all segments are anticipated to develop repeatedly within the long-term forecast, underpinned by sturdy demand from residential and grid-scale.
Wooden Mackenzie’s Witte added that rising costs and provide chain challenges are primarily attributable to an absence of provide coupled with heavy demand that’s driving many tasks previous 2022 and later forecast years. . Nonetheless, the pipeline stays sturdy and lively storage requests within the interconnection queue between 2022 and 2028 elevated 120% quarter-over-quarter.
Witte mentioned: “Some builders are contemplating delaying tasks to 2023 to obtain tax credit from the Inflation Discount Act, however this can solely apply to a distinct segment a part of the tasks. the forecast, with 2024-2026 which sees a rise of 9-13% per 12 months attributable to this.”