August 19, 2021 Read More →

EIA: Batteries could add 10 GW of capacity in next three years

S&P Capital IQ ($):

Project developers plan to install more than 10 GW of large-scale battery storage capacity in the U.S. between 2021 and 2023, 10 times the storage capacity available in 2019, the U.S. Energy Information Administration said in a report released Aug. 16.

The boom is significant because energy storage plays a key role in helping power grids to function with more flexibility and resilience, the EIA said in the report.

The expansion in storage has been driven by declining costs and favorable state policies, the EIA said. The growth in storage was also aided by more storage-friendly rules in wholesale power markets and a limited federal tax credit for storage paired with renewables, the agency added.

Most of the large-scale battery energy storage systems slated to come online over the next three years are expected to be built at solar power plants, which is a new trend, the EIA said, adding that previously, most big storage systems were standalone facilities not located on-site at a power plant.

“If all currently announced projects from 2021 to 2023 become operational, then the share of U.S. battery storage that is co-located with generation would increase from 30% to 60%,” according to the report.

Nearly 25% of all planned solar photovoltaic capacity will include co-located storage, compared with less than 2% of existing solar PV capacity as of December 2020, the EIA said.

[Kate Winston]

More: Battery storage boom could add 10 GW of capacity in next 3 years — EIA

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