United States Hits New High in Quarterly Energy Storage Installations

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In the second quarter of 2023, there has been significant progress in the energy storage market in the United States. By adding 5,597 megawatt-hours (MWh) of energy storage, the U.S. market has set a new battery storage installation record.

In Q2, the grid-scale energy storage sector took the lead, setting a new record by installing an impressive 5,109 megawatt-hours (MWh) of storage capacity. This achievement surpassed the previous Q4 2021 record by a significant 5%. What’s more, the grid-scale segment experienced exceptional quarter-over-quarter growth, surging by an astonishing 172%.

California played a vital role in this energy storage surge, contributing a substantial 738 megawatts (MW) to the total installations in Q2. This remarkable capacity accounted for an impressive 49% share of the overall installed capacity during the same period.

A Record-Breaking Year for the Energy Storage Market:

The energy storage market will achieve a record-breaking year as more utilities and major energy consumers are turning to storage solutions. This will improve the reliability and efficiency of the power grid. Moreover, despite facing challenges like supply chain disruptions, the market is still on track to nearly double its annual installations.

According to Wood Mackenzie’s five-year forecast from 2023 to 2027, the grid-scale segment will play an important role in driving market expansion. This accounts for about 83% of total installations, which is equivalent to 55 gigawatts (GW) of capacity.

After several consecutive quarters of decline, there has been a boost in the second quarter. Many projects that had been delayed in previous quarters due to supply chain issues were successfully completed. However, despite achieving record numbers, the expected project pipeline did not fully materialize. Due to this, more than 2 GW of projects are seeing its completion to a later date.

Community, Commercial, and Industrial (CCI) Storage Installations:

In the world of community, commercial, and industrial (CCI) storage installations, the second quarter of the year achieved an impressive total of 107 megawatt-hours (MWh) additions. However, this increase couldn’t match the surge in installations seen in the first quarter. This shows a 53% decline from the previous quarter. Nonetheless, when we compare it to the same period last year, this segment has grown by 25%.

On the other hand, there is a decline in residential storage installations in second consecutive quarter. In Q2 a total of 381.2 MWh of energy was added. Initially it was 388.2 MWh recorded in Q1. Notably, In California, a 17% decrease in installations than the previous quarter and a notable 37% decline from the same time last year has been noticed.

Vanessa Witte, the energy storage expert at Wood Mackenzie, mentioned that they still anticipate a growth in the residential segment in their five-year outlook. The boost will reach a total of 8.0 gigawatts (GW) in 2027. 

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