The Smart Electric Power Alliance (SEPA) has released its 2019 report on utility energy storage deployment in the US.
The US energy storage market is healthy and set to continue growing, according to the report.
The sector has grown by 44.9% in 2018 from the previous year and saw energy storage capacity reaching 1,966.6MWh in 2018 from 760.3MWh in 2017.
Residential storage deployments grew 500.1% in 2018, non-residential storage showed strong growth of 34.9% while utility-supply storage remained the largest segment at 394MWh and grew by 11.3%.
Key factors driving the growth include the implementation of favourable policies and continued decrease in technology costs.
Key takeaways from the report include:
- Investor-owned utilities deployed the most storage of any utility type, accounting for 64.3% of the total market in 2018, with public power utilities and electric cooperatives also experiencing strong growth at 1435.5% and 154.4% respectively over 2017.
- Of the 211 utilities investigated, 94 had at least one energy storage installation in their service territory as of the end of 2018. One-quarter of those deployed their first storage project in 2018.
- The business case for certain lithium-ion battery storage applications has become more attractive as the price of lithium-ion storage assets has declined by 72.9% since 2013
Mac Keller, co-lead author and Research Associate at SEPA, said: “Energy storage deployments are accelerating, driven by increasingly compelling economics, favorable state policies, and residential programs in California, Hawaii, and Vermont.
“Beyond traditional back-up generation, battery storage is able to provide ancillary services, ramping, smoothing, and peaking services to meet the demands of an increasingly diversified and distributed electrical system. Based on these expanded applications, coupled with the emergence of long-duration technologies, the energy storage market is primed for continued growth.”
Download the free 2019 Utility Energy Storage Snapshot report here.
View the full 2019 Top 10 energy storage and solar rankings here.