June 14, 2019 (IEEFA) — Momentum is gaining around an industry shift toward utility-scale battery storage systems nationally, finds a report published today by the Institute for Energy Economics and Financial Analysis (IEEFA).
The report – Advances in Electricity Storage Suggest Rapid Disruption of U.S. Electricity Sector –details upstart storage and storage-expansion projects in Arizona, California, Hawaii, Florida, Massachusetts, New Hampshire, Nevada, Texas, and Vermont.
Dennis Wamsted, an IEEFA editor/analyst and lead author of the report, said recent evidence of utility-scale storage adoption is most likely the beginning of a trend that will take hold broadly across the industry, benefitting renewables at the expense of gas- and coal-fired plants.
“Bigger changes loom,” Wamsted said. “In the many examples we researched, each project, by and large was driven by one of several value streams—cutting transmission charges, providing grid resilience, offering peak power, allowing for early plant closures and the like—even if other benefits were accrued too.”
The report details dozens of examples of electric companies large and small finding an assortment of cost savings in electricity-storage technology and portability.
“Installation is still tiny in terms of absolute numbers, but power storage is now ubiquitous and energy storage is no longer a pie-in-the sky proposition,” Wamsted said. “These changes are taking place today.”
Excerpts from the report:
Wamsted said economies of scale will help drive the expansion of utility-scale battery storage, as will a growing recognition by utility companies of the business case for embracing the shift: “It is likely that developers and utilities will be able to stack these benefits, making storage even more economically competitive.”
Dennis Wamsted ([email protected]) is an IEEFA editor and analyst, tel: (703) 237‑9531
Vivienne Heston ([email protected]), tel: (914) 439-8921
The Institute for Energy Economics and Financial Analysis (IEEFA) conducts global research and analyses on financial and economic issues related to energy and the environment. The Institute’s mission is to accelerate the transition to a diverse, sustainable and profitable energy economy.