US energy storage market sees 232% year-on-year growth

Source: By Catherine Morehouse, Utility Dive • Posted: Thursday, June 6, 2019

Analysts predicted at the end of 2018 that utility solicitations of storage as well as state legislative targets would drive the resource’s growth in 2019.

As the economics of storage and renewables improve, more utilities are including those pairings in their integrated resource plans and more state legislatures are looking at how to best incentivize battery storage.

Energy storage deployments increased 232% over Q1 2018.

Looking at Q2 2019, the report notes progress has largely been made through utility efforts to include the resource, on its own and paired with renewables.

In Q2, Southern California Edison announced seven contracts for 195 MW of energy storage, Green Mountain Power’s 2018 integrated resource plan included a goal of adding 50 MW to 100 MW of storage in the next decade and Florida Power and Light announced a 409 MW solar-plus-storage project.

Meanwhile, utilities such as Oklahoma Municipal Power Authority, Hawaiian Electric Company and the Tennessee Valley Authority are either actively seeking storage solicitations or have included it as an option for bidders.

But as the market continues to grow, anticipated to reach $4.8 billion in value by 2024, state lawmakers and regulators are also making it a priority in energy policy:

Two congressional bills were introduced in Q2 that would expand investment tax credit eligibility to standalone storage facilities and the Trump administration’s fiscal year 2020 budget proposed two initiatives that would allocate $163 million toward research and development on the resource.