Energy Trend has gathered insights from EIA statistics, revealing that October of 2023 witnessed new installations exceeding 1MW, amounting to 0.18GW. This falls significantly below the anticipated 1.08 GW, marking a 73% year-on-year decrease and a 69% month-on-month decrease. From January to October 2023, the United States experienced a surge in new energy storage installations, surpassing 1MW capacity, totaling 4.56GW—an impressive 21% year-on-year increase. October's actual installations fell short of the predicted figures from the previous month.
Forecast for monthly new energy storage installations (1MW+) in the U.S. for 2023 (Unit: GW)
The statistics indicate a mere three installation projects, with the largest being Terra-Gen Power's Sanborn BESS 3 in California, boasting an installed capacity of 0.17GW. The scarcity of installation projects in October can be attributed to delays in the grid connection processes. Notably, large-capacity projects exceeding 100MW face a delay of approximately two months:
- The Chestnut project in California has been postponed to November 2023.
- The Azure Sky Wind Project, LLC Hybrid in Texas is now slated for December 2023.
- Edwards Sanborn E1B project has been rescheduled for November 2023.
- Edwards Sanborn E4 project is also delayed until November 2023.
- The Revolution project has been pushed back to November 2023.
Energy Storage Installation Forecast for 2023 and 2024
As per the latest insights from the U.S. Energy Information Administration (EIA), the planned new energy storage installations with a capacity of 1MW and above are projected to hit 18.7GW from November 2023 through the end of 2024.
In the upcoming months, there's a plan to install 3.8GW of energy storage, spanning from November to December in 2023. This implies an anticipated annual energy storage installation of 8.36GW for 2023 (compared to last month's forecast of 8.55GW), reflecting a noteworthy 103% year-on-year increase. Looking ahead to 2024, the plan is to install 14.91GW of energy storage (last month's forecast was 14.96GW), showcasing a substantial 78.4% year-on-year growth. Despite ongoing updates to this planned installation data, the forecasts for 2023 and 2024 remain largely consistent with last month's projections.
Forecast for monthly new energy storage installations (1MW+) in the U.S. for 2024 (Unit: GW)
Overall, the EIA foresees 2023 installations reaching 8.36GW, a slight reduction from the 8.55GW forecasted last month. For 2024, the annual installations are expected to hit 14.91GW, with the growth rate revised up to 78.4% after adjustments. With declining costs on the supply side, including battery costs, an expected decrease in financing costs, clarified IRA policies, and streamlined policy processes, the energy storage industry is experiencing a boom. Given the presence of project reserves, the installed capacity in the United States is set to rise.
As technology evolves, costs continue to decrease, and innovative business models emerge, the energy storage industry is poised for significant development, driven by both internal industry factors and external drivers. Enterprises actively expanding into overseas markets, possessing leading-edge technology, and seizing opportunities to participate in the supply chain of the large-scale energy storage market in the United States are expected to reap substantial benefits from this trend.
