September 10, 2018 [Renewables Now] - The US has experienced a 200% year-on-year surge in second-quarter (Q2) energy storage deployments with 156.5 MWh added in the period, a new report shows.
Projections indicate that annual deployments will grow from an estimated 774 MWh in 2018 to more than 11,700 MWh in 2023.
According to the US Energy Storage Monitor, produced by the Energy Storage Association and Wood Mackenzie Power & Renewables, formerly GTM Research, customers have demonstrated an increased interest in self-consumption, which has resulted in a tenfold year-on-year jump within the residential segment. The authors of the report note that this is the first time that home energy storage installations surpass front-of-meter storage deployments in a single quarter.
The states of California and Hawaii together account for 72% of the deployed megawatt-hours over the three-month period in the residential segment. Brett Simon, senior analyst at Wood Mackenzie Power & Renewables, believes that the two states will continue to dominate the market, while Massachusetts and Arizona will compete for the third spot.
“So far in 2018, 24 states and the District of Columbia have taken some form of regulatory or legislative policy action with respect to energy storage, with even more states poised to do so in 2019,” said Kelly Speakes-Backman, CEO of the Energy Storage Association.
The US residential storage market in July-December 2018 is seen to be comparable in size to that in the first half. Wood Mackenzie explained that distributors do not seem to be able to cater to growing demand due to lithium-ion battery supply constraints. The supply issue is expected to be resolved in the longer term as multiple large battery manufacturing plants are set to open in the early 2020s.
Meanwhile, the non-residential and front-of-meter segments deployed 48 MWh and 51 MWh, respectively. The front-of-the-meter segment fell 30% on the year when measured in megawatts, but rose 176% in megawatt-hours because long-duration projects for services such as capacity and load-shifting had a higher share. All front-of-meter installations were paired with solar production during the quarter.
In terms of value, the US energy storage market is seen to grow to USD 541 million (EUR 466m) this year and cross USD 1 billion in 2019. The market is expected to reach USD 4.6 billion by 2023.
—————————-
TankTerminals.com – Research, Market and Expand Your Presence within the Tank Storage Industry. Learn more.
