US Energy Storage Market Reaches Record Deployments Despite COVID-19

Industry News – Thursday, September 03, 2020

According to market intelligence provider Wood Mackenzie and the U.S. Energy Storage Association’s (ESA) latest 'US Energy Storage Monitor' report, 168 MW energy storage capacity were deployed in Q2 2020 in the U.S. This is an increase of 72% quarter-over-quarter, 117% year-over-year and is the second-highest quarterly total ever seen, falling just behind Q4 2019 (186.4 MW).

The US FTM market grew more than fourfold compared to Q1. Deployments notched their fifth-best quarterly total (89.8 MW) and the largest Q2 on record. A large front-of-meter (FTM) in California accounts for more than two-thirds of the total FTM MW deployed. After a quiet 2019, the state is expected to remain in a leading position over the next six quarters.

The record quarter for residential storage deployments, which increased 28% YoY, also illustrates that California and Hawaii successfully kept installations progressing through coronavirus lockdowns.

“We are encouraged by the growth the energy storage market has seen this quarter,” said Kelly Speakes-Backman, CEO of ESA. “Despite any setbacks from the coronavirus pandemic, the market for energy storage is poised to see significant growth in 2020. Looking out to future growth, we are confident that our expanded vision of 100 GW of new energy storage by 2030 is entirely reasonable and attainable, pushing us closer to reaching a more resilient, efficient, sustainable and affordable electric grid.”

Dan Finn-Foley, Wood Mackenzie Head of Energy Storage, said: “The US energy storage market has proven remarkably resilient to impacts from coronavirus lockdowns. The commercial and industrial (C&I) space was the only segment that showed a slowdown. This was primarily because of a decline in the C&I California market due to permitting and other delays. We expect the rest of the year to come in strong as growing interest in residential storage, emerging new markets for C&I and massive FTM systems are set to break quarterly records.”

The non-residential market demonstrated more volatility than the residential market in the second quarter of 2020. A significant amount of non-residential upside is tied to community solar-plus-storage. The majority of this is concentrated in Massachusetts and New York and driven by those states’ strong incentive programs and access to wholesale markets.

Source: WoodMackenzie |
Image: pixabay |

The ees International Magazine is specialized on the future-oriented market of electrical energy storage systems, not only from a technological-, but also a financial and application-oriented point-of-view. In cooperation with ees Global, the ees International Magazine informs the energy industry about current progress and the latest market innovations.

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