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U.S. Energy Storage: First Quarter Sees an Increase of 0.78 GW/2.145 GWh – EQ Mag

U.S. Energy Storage: First Quarter Sees an Increase of 0.78 GW/2.145 GWh – EQ Mag

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In the first quarter, U.S. energy storage capacity experienced a growth of 0.78 GW/2.145 GWh, indicating a year-on-year reduction of 11.3% and 22%, as well as a quarter-on-quarter reduction of 27% and 29%. The front-of-the-meter market remains the primary driver of energy storage installations in the U.S., accounting for 70.5% and 72.3% of the market share. During the first quarter of 2023, the front-of-the-meter market saw the addition of 0.55 GW/1.55 GWh of new installations, representing a year-on-year reduction of 25.8% and 35.3%, as well as a month-on-month reduction of 34.8% and 38.1%. Supply chain and grid connection bottlenecks have led to the delay of over 1.8 GW of energy storage projects in the first quarter, with California and Texas contributing 84% of the new front-of-the-meter installations.

In the residential storage market, the first quarter of 2023 witnessed the installation of 155 MW/388 MWh, reflecting a year-on-year increase of 7.1% and 16.2%, but a decrease of 9.1% and 9.3% compared to the previous quarter. This decline marks the first year-on-year decrease in nearly two years, breaking the momentum of six consecutive quarters of year-on-year growth. In the commercial and industrial (C&I) market, installations reached 69 MW/203 MWh in the first quarter, showing a year-on-year increase of 9.7% and 43%, as well as a significant increase of 44% and 111.8% compared to the previous quarter. The rebound in C&I storage installations is mainly attributed to the grid connection of previously postponed projects.

According to Wood Mackenzie’s statistics, the U.S. installed 4.8 GW/12.2 GWh of energy storage in 2022, representing a year-on-year increase of 34.2% and 11.8%. However, due to supply chain and grid connection limitations, these figures fell short of market expectations. Previous quarterly installation reports suggested that the U.S. would surpass 14 GWh of installed energy storage capacity in 2022. Although the first-quarter installations in 2023 were lower than anticipated, it is still projected that new installations for the year will double compared to the previous year.

Source: energytrend
Anand Gupta Editor - EQ Int'l Media Network