Energy Storage in United States to Double this Year
- May 28, 2019
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Much like improvements to solar PV efficiency and commensurate drops in costs of solar panels have been one of the key stories of the past decade that spelled out the path to rapid deployment, energy storage is poised to follow this same path in the coming decade. The combination of solar (or other intermittent renewables) plus storage has many across the energy and utilities industries excited for the possibility of a transformation across the U.S. grid.
However, as with all emerging technologies, some of these forecasts are turned a critical eye and determined to be overly optimistic or unrealistic. This push/pull is a natural reaction as information continues to become available and R&D continually rolls out, but the best place to look is at the recent trends to determine how founded the optimism is. For that reason, this recent report about how the U.S. grid-tied energy storage market is going to double this year was particularly interesting to see.
This analysis coming from IHS Markit came to the following conclusions:
- U.S. grid-tied energy storage market poised to nearly double from 376 MW last year to 712 MW this year (includes transmission connected project & behind the meter storage)
- The U.S. will thus pass South Korea as the largest grid-tied energy storage market in the world
- From 2019-2023, nearly 5 GW is expected to be added (90% of which is Lithium-ion)
- Big source of this growth over next few years is batteries coupled with utility-scale solar as those will account for 40% of battery deployments (2 GW total)
How do these numbers strike you? Reason for excitement? Overblown? Work still to be done? Are we on the right path?