Guidehouse: Utility-scale energy storage industry ‘blossoming’ in several US states

Share on linkedin
Share on twitter
Share on reddit
Share on facebook
Share on email
A CS Energy solar project installed with a 3.8MWh lithium-ion storage solution in Amesbury, Massachusetts. Image: CS Energy.

The US utility-scale energy storage market is projected to maintain its position as the world’s largest and fastest-growing in the coming years, according to a new report from Guidehouse Insights.

Despite the rapid growth, the development of new utility-scale energy storage systems (ESSs) remains highly concentrated in a few states. The market research provider’s report shows California, New York, and Texas lead the top 10 US energy storage markets.

Alex Eller, senior research analyst with Guidehouse Insights, said utility-scale energy storage in the US “has quickly transformed from an expensive and poorly understood niche technology to a major source of new investment”.

“While several states have seen a blossoming storage industry, many others have little to no utility-scale energy storage currently operating,” he said.

“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.”

The report, ‘Leading US States for Utility-Scale Energy Storage’, says the US utility-scale energy storage market is the most diverse in terms of the uses of energy storage and the number of competitors and technologies.

It notes that while the market is highly fragmented, additional states are quickly emerging as strong markets. However, the report warns of varying market structures, regulations and economic applications for projects in different states.  

Speaking at the Energy Storage Digital Series online conference hosted by our publisher Solar Media earlier this year, Alex Eller said “one of the most impactful” energy storage policies in the US has been the state-level energy storage deployment targets, which require utilities to procure energy storage.

Currently, the seven states that have these targets in place are: New York, New Jersey, California, Nevada, Massachusetts, Oregon and Virginia.

Read Next

May 20, 2022
French renewable power producer and developer Akuo Energy has commissioned a 29.2MWh battery energy storage system (BESS) in Tonga, several weeks after powering up a 19MWh project in Martinique.
May 20, 2022
Microinverter and home energy storage system supplier Enphase Energy has “relatively good availability” of its products despite high demand in the current supply chain environment, its marketing director for Europe told
May 19, 2022
Co-located storage is growing as a proportion of the UK market with 7.2GW of projects in the pipeline, but structuring deals and offtake agreements presents a complex challenge according to an expert source.
May 19, 2022
The secretary-general of the UN has highlighted the crucial role battery storage can play in tackling the global climate crisis.
May 19, 2022
Renewable energy developer Maoneng has received grid connection approval on its 240MW/480MWh Mornington Peninsula battery energy storage system (BESS) in Victoria.

Most Popular

Email Newsletter