The US utility-scale energy storage market has been the world’s largest and fastest-growing since 2015 and is projected to maintain that position through 2023, according to a new report issued by Guidehouse Insights.
Despite the rapid growth, however, the development of new utility-scale energy storage systems remains highly concentrated in a few states.
California, New York, and Texas lead the top 10 US utility-scale energy storage markets.
While new states are emerging as strong markets, each state has varying market structures, regulations, economic applications for projects, and other considerations, according to the study.
Understanding the differences between states in terms of their market structures, utility processes, competitive landscape, and supportive policies is expected to be critical for success in the energy storage industry.
Alex Eller, senior research analyst with Guidehouse Insights, said: “In the US, utility-scale energy storage has quickly transformed from an expensive and poorly understood niche technology to a major source of new investment with thousands of megawatts of new projects being developed.
“While several states have seen a blossoming storage industry, many others have little to no utility-scale energy storage currently operating, however, this reality is expected to change quickly as the falling costs of batteries and other technologies allow utility-scale energy storage projects to compete directly with conventional fossil fuel systems.”
Read more about the Leading US States for Utility-Scale Energy Storage report.