September 14, 2021 Read More →

Wood Mackenzie says annual U.S. energy storage investment could top $5 billion in 2021

Energy Storage News:

The US is likely to install record setting amounts of battery storage this year, demonstrating the acceptance the technology has found in the power sector and as an integral part of the clean energy transition.

That’s according to Wood Mackenzie Power & Renewables senior energy storage analyst Vanessa Witte, commenting on the latest quarterly edition of the research firm’s US Energy Storage Monitor market report.

In total, 345MW of battery storage was deployed around the country, including 218MW / 729MWh of front-of-the-meter deployments, in the last three months. A significant portion of that front-of-the-meter figure came from the 100MW / 400MWh Saticoy Energy Storage project in California, which notably was chosen as an alternative form of peaking capacity to a new natural gas peaking power plant.

Two smaller front-of-the-meter utility-scale projects that combined solar PV with battery storage contributed the next largest share, located in Texas and Arizona and bringing online 40MWac and 30MW of batteries respectively for Danish multinational utility Ørsted and Arizona utility Tucson Electric Power. Both were announced as commissioned in mid-May. Ørsted’s Permian Energy Center in Andrews County, Texas, was the Danish company’s first US solar-plus-storage project, while Tucson Electric Power’s Wilmot Energy Center marks a push forward for a utility which anticipates growing its energy storage deployments from about 50MW this year to 1,400MW by 2035.

“The United States remains on course for a record setting year, further demonstrating battery storage’s growing acceptance within the power market and underlining its importance to the energy transition,” Wood Mackenzie’s Vanessa Witte said.

Wood Mackenzie’s tracking of the market over the previous few years shows that historically, the third and especially fourth quarter of each year has seen a surge in deployments. The research firm believes that this will be the case once again, resulting in an “unprecedented volume” of storage coming online in the second half of the year. More than US$5 billion of investment will come online in 2021, the firm has asserted.

[Andy Colthorpe]

More: Wood Mackenzie: US battery storage deployments worth US$5 billion forecast in record setting year

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