US energy storage market hits new record on road to 'unprecedented' growth
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ESA chief executive Kelly Speakes-Backman.
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A record 476MW of energy storage was deployed in the US in the third quarter of 2020 – an increase of 240% over the previous high set in the last quarter, according to a new report.
The major growth was in the front-of-the-meter (FTM) sector, with nearly 400 MW / 578MWh of storage deployed in Q3 – surpassing previous records of 133MW / 296MWh for the sector, according to the latest US Energy Storage Monitor report by analysts Wood Mackenzie Power & Renewables and the US Energy Storage Association (ESA).
ESA chief executive officer Kelly Speakes-Backman said the report pointed to "an unprecedented increase in energy storage in the coming months”, edging the US closer towards the ESA’s goal of achieving 100GW by 2030.
California ranked first in the top three Q3 markets in terms of energy capacity, followed by Hawaii and Arizona respectively.
The major growth was in the front-of-the-meter (FTM) sector, with nearly 400 MW / 578MWh of storage deployed in Q3 – surpassing previous records of 133MW / 296MWh for the sector, according to the latest US Energy Storage Monitor report by analysts Wood Mackenzie Power & Renewables and the US Energy Storage Association (ESA).
ESA chief executive officer Kelly Speakes-Backman said the report pointed to "an unprecedented increase in energy storage in the coming months”, edging the US closer towards the ESA’s goal of achieving 100GW by 2030.
California ranked first in the top three Q3 markets in terms of energy capacity, followed by Hawaii and Arizona respectively.
'Exponential growth'
The report said that while the residential segment also grew in Q3 – up 7% compared to Q2 and marking another record quarter – FTM storage saw the most growth, increasing by more than 330% compared to the previous quarter.
The non-residential segment shrank by 3% in MW terms from Q2 2020, "notching another weak quarter for the segment as business models outside of high-incentive markets have been rare and Covid-19 has slowed down investment”, the report said.
Wood Mackenzie head of energy storage Dan Finn-Foley said: "These eye-catching deployment totals represent only the beginning of a long-anticipated scale-up for the US storage market. Massive price declines and efforts to ensure eligibility have set the stage for exponential growth… Considering the scale of systems anticipated for 2021 we do not expect this record, as remarkable as it is, to stand for long.”
US Energy Storage Monitor link
The report said that while the residential segment also grew in Q3 – up 7% compared to Q2 and marking another record quarter – FTM storage saw the most growth, increasing by more than 330% compared to the previous quarter.
The non-residential segment shrank by 3% in MW terms from Q2 2020, "notching another weak quarter for the segment as business models outside of high-incentive markets have been rare and Covid-19 has slowed down investment”, the report said.
Wood Mackenzie head of energy storage Dan Finn-Foley said: "These eye-catching deployment totals represent only the beginning of a long-anticipated scale-up for the US storage market. Massive price declines and efforts to ensure eligibility have set the stage for exponential growth… Considering the scale of systems anticipated for 2021 we do not expect this record, as remarkable as it is, to stand for long.”
US Energy Storage Monitor link
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