April 02, 2020 [Renewables Now – Published March 31, 2020] – The coronavirus outbreak has forced Wood Mackenzie to lower its 2020 forecast for behind-the-meter (BTM) energy storage installations in the US by 31%.

Before the reduction, the market researcher’s most recent prognosis envisaged 632 MW of total energy storage deployments for 2020. Some 420 MW of residential battery installations were expected to be put on stream this year, or three times more than the 139 MW deployed in 2019. Commercial installations were seen to register a 59% rise to 212 MW.

The forecast reduction follows the global crisis caused by the spread of the novel infectious disease and its impact on business. Developers in the sector are fighting to overcome challenges related to the commissioning and interconnection of projects as many of them have been deprived of on-site personnel due to travel restrictions and lockdown measures.

“This has led to project delays and additional costs which, if they continue long enough, will lead to projects missing crucial deadlines – such as ITC qualification – which could destroy project economics,” said Brett Simon, Wood Mackenzie senior research analyst. He noted that personnel reductions by permitting agencies and other limitations restricting free movement will further add to the commissioning and interconnection troubles.

The product supply chain, meanwhile, is still not that hurt as Asian battery makers are ramping back production to normal levels now and the supply level is stable. Nevertheless, this could change in the coming weeks and put additional pressure on the commissioning and interconnection issues. It is still not known to what extent the manufacturing process in the US and Canada will be hurt by the COVID-19 pandemic, the research firm noted.

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