The utility-scale vitality storage market put in 4,733 MWh in Q3 2022, surpassing the earlier quarterly excessive of 4,590 MWh set in Q1 2021. This data is within the newest “U.S. Energy Storage Monitor” report from ACP and Wooden Mackenzie. Grid-scale storage deployments in Q3 primarily got here from California and Texas, which accounted for 96% of whole put in capability.
“Demand within the grid-scale and residential storage segments continues to extend, regardless of rising prices and lingering provide chain challenges,” stated Vanessa Witte, senior analyst with Wooden Mackenzie’s vitality storage group. “Put in capability is predicted to greater than double subsequent 12 months, pushed by new grid-scale venture bulletins and elevated residential and non-residential volumes in California because of the introduction of a group photo voltaic program and NEM 3.0.”
In line with the report, the whole forecast quantity between 2022 and 2026 throughout all segments elevated by 109% quarter-over-quarter, and the U.S. storage market is predicted to put in virtually 65 GW whole, with grid-scale installations accounting for 84% of that capability.
“Demand for vitality storage is at an all-time excessive, pushed by sustained increased vitality costs, state decarbonization mandates, and Inflation Discount Act incentives,” stated Jason Burwen, VP of Vitality Storage on the American Clear Energy Affiliation (ACP). “California’s reliance on vitality storage to fulfill report peak demand this September exhibits why it’s completely important that policymakers and grid operators take away boundaries to produce to make sure reliability. The speedy improve in grid-scale storage capability requesting to hook up with the grid demonstrates that the tempo of U.S. business development is more and more depending on the supply of transmission and well timed grid entry.”
Credit score: CSI Vitality Storage
Residential storage had one other report quarter, with 400 MWh put in, surpassing the earlier quarterly report of 375 MWh in Q2 2022. California, Puerto Rico, Texas and Hawaii have been leaders in Q3 for residential instalments. Wooden Mackenzie initiatives that this section will climb to 2.2 GW in 2026.
Neighborhood, industrial and industrial storage deployments underwhelm for the second quarter in a row, with solely 56.6 MWh put in in Q3. Nonetheless, all segments are anticipated to steadily develop over the long-term forecast, bolstered by the robust demand from residential and grid-scale.
Wooden Mackenzie’s Witte added that elevated costs and provide chain challenges largely as a consequence of a provide deficit mixed with heavy demand have pushed a number of initiatives previous 2022 and into later years of the forecast. Nonetheless, the pipeline stays robust and lively storage requests within the interconnection queue between 2022 and 2028 elevated 120% quarter-over-quarter.
“Some builders have thought-about delaying initiatives into 2023 to obtain tax credit from the Inflation Discount Act, however this solely applies to a really area of interest section of initiatives,” Witte stated. “Basically, provide chain challenges and interconnection queue backlogs will push capability to later within the forecast, with 2024 to 2026 seeing will increase of 9 to 13% per 12 months as a consequence of this.”
Information merchandise from ACP
