The US is more likely to set up document setting quantities of battery storage this yr, demonstrating the acceptance the expertise has discovered within the energy sector and as an integral a part of the clear vitality transition.
That’s based on Wooden Mackenzie Energy & Renewables senior vitality storage analyst Vanessa Witte, commenting on the most recent quarterly version of the analysis agency’s US Vitality Storage Monitor market report.
In complete, 345MW of battery storage was deployed across the nation, together with 218MW / 729MWh of front-of-the-meter deployments, within the final three months. A good portion of that front-of-the-meter determine got here from the 100MW / 400MWh Saticoy Vitality Storage challenge 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 initiatives that mixed photo voltaic PV with battery storage contributed the subsequent largest share, situated in Texas and Arizona and bringing on-line 40MWac and 30MW of batteries respectively for Danish multinational utility Ørsted and Arizona utility Tucson Electrical Energy. Both were announced as commissioned in mid-May.
Ørsted’s Permian Vitality Middle in Andrews County, Texas, was the Danish firm’s first US solar-plus-storage challenge, whereas Tucson Electrical Energy’s Wilmot Vitality Middle marks a push ahead for a utility which anticipates rising its vitality storage deployments from about 50MW this yr to 1,400MW by 2035.
“The US stays on track for a document setting yr, additional demonstrating battery storage’s rising acceptance throughout the energy market and underlining its significance to the vitality transition,” Wooden Mackenzie’s Vanessa Witte stated.
Whereas barely greater than the earlier quarter was put in in Q2, the 345MW complete was a 162% improve over Q2 2020, which admittedly noticed the impacts of the COVID-19 pandemic start to chew the world over. Nonetheless, Wooden Mackenzie famous that Q2 2021 was the second-largest quarter on document for storage additions by megawatt.
‘Unprecedented quantity’ on the best way this yr
Wooden Mackenzie’s monitoring of the market over the previous couple of years exhibits that traditionally, the third and particularly fourth quarter of every yr has seen a surge in deployments. The analysis agency believes that this would be the case as soon as once more, leading to an “unprecedented quantity” of storage coming on-line within the second half of the yr.
Greater than US$5 billion of funding will come on-line in 2021, the agency has asserted.
Wooden Mackenzie did say nonetheless that residential vitality storage deployments noticed their first dip for the reason that fourth quarter of 2018 — 9 consecutive quarters in the past — which was a results of tools and provide chain constraints hampering development within the phase. In the meantime non-residential (group and industrial & industrial) deployments rose 31% quarter-on-quarter. Massachusetts’ group storage market has loved a current interval of development which contributed to that.
State-level coverage drivers proceed to be vital to the fortunes of vitality storage throughout the US. Wooden Mackenzie famous a number of new state incentives had been launched in the course of the quarter, most of which utilized to the behind-the-meter segments of residential and non-residential.
Among the many notable coverage developments that Vitality-Storage.information reported in the course of the quarter had been Connecticut and Maine turning into the eighth and ninth states respectively to undertake statewide vitality storage deployment targets, with Connecticut introducing a programme to incentivise 580MW of behind-the-meter storage by 2030.
As famous within the earlier version of the US Vitality Storage Monitor, the introduction of an funding tax credit score (ITC) incentive for standalone vitality storage might create a big uplift to deployments, Wooden Mackenzie stated. Final week the Home of Representatives Methods & Means Committee revealed its sequence of suggestions in the direction of Funds Reconciliation measures that are supposed to be pushed via later this yr. The Committee included the storage ITC, in addition to prolonged and new tax credit score eligibility for renewable vitality applied sciences.
Wooden Mackenzie has beforehand stated that as much as 12GWh could be installed in the US this year. The agency’s excessive expectations of the vitality storage market seem to tally with another statistical indicators: the US Division of Vitality’s Vitality Info Administration (EIA) stated a number of weeks in the past that 10,000MW of new energy storage is expected to be installed in utility service areas across the nation by the tip of 2023. The overwhelming majority of this capability is deliberate to be solar-plus-storage, though the introduction of the ITC may very well be moderately anticipated to provide the standalone battery phase a giant enhance.