According to the EIA, the newly added energy storage capacity with battery sizes exceeding 1MW in the United States soared to 3.3GW in the first seven months of 2023, marking an impressive 91% year-on-year increase. In a more specific breakdown, the month of July witnessed a remarkable surge with new energy storage installations totaling 1.5GW, reflecting a staggering 282% year-on-year boost and a 46% increase compared to the previous month.
Planned installation capacity is 6.3GW from August to December
According to EIA statistics, as of the end of July 2023, planned installations of energy storage projects with a capacity of 1MW and above batteries are set to reach 18.6GW by 2024. Specifically, there are plans to install 6.3GW of energy storage between August and December 2023, contributing to an expected annual installation total of 9.6GW for 2023, marking a remarkable 133% year-on-year growth. In 2024, it’s anticipated that 12.3GW of energy storage will be installed, representing a 28% increase over the expected full-year installations in 2023 (installation data will be continuously updated).
Energy Storage Installed Capacity in 2023
In the first half of 2023, the United States saw significant growth in its utility energy storage capacity and reserves:
According to S&P Global’ s forecast, the new installed capacity of U.S. utility energy storage (battery storage) is projected to reach 3.50GW in Q3 2023, marking an 81% increase compared to the previous quarter.
Additionally, data from ACP and Wood Mackenzie reveals that U.S. utility energy storage installations reached 2.06GW/6.65GWh in H1 2023, representing an 8.4% increase in gigawatts and a substantial 35.5% increase in gigawatt-hours.
Specifically, in Q2 2023, new U.S. utility energy storage installations soared to 1.51GW/5.10GWh, marking impressive quarter-on-quarter increases of 175% and 229%, respectively. During this period, 260 U.S. utility energy storage projects were under construction, totaling 21.1GW/59.9GWh—almost double the number in Q1 2023.
Looking at Q1 2023 installed capacity, data from Wood Mackenzie shows that the U.S. energy storage market reached 0.78GW/2.15GWh, reflecting an 11% year-on-year decrease in gigawatts and an 8% decrease in gigawatt-hours. Quarter-on-quarter, there was a 26% reduction in gigawatts and a 28% reduction in gigawatt-hours.
Analyzing the installed structure in Q1 2023, Wood Mackenzie’s statistics indicate that grid-level energy storage, industrial, commercial, and community energy storage, and residential energy storage reached capacities of 0.55GW/1.55GWh, 0.07GW/0.20GWh, and 0.16GW/0.39GWh, respectively. These figures correspond to year-on-year growth rates of 21%, 33%, 119%, 145%, 7%, and 36%. In terms of the total installed size, these categories accounted for 71.2%, 8.8%, and 19.9% of the total installed capacity (MW), respectively.
U.S. Quarterly New Energy Storage Installations Since 2022
When it comes to energy storage policy, the United States has established long-term development objectives and implemented pertinent regulations. These initiatives encompass the promotion of energy storage across various application scenarios. The U.S. energy storage market and business models have reached a level of maturity and stability, with the federal government prioritizing energy storage policies that emphasize both technical research and economic incentives to drive widespread adoption.
The United States has designated energy storage as a pivotal sector for support, with a strategic focus on bolstering domestic production. To attain future localization objectives, the country is actively investing in technology, fostering independent research and development, and promoting the comprehensive application of cutting-edge energy storage technologies. The Inflation Reduction Act introduces extra tax credits for energy storage systems that meet specific localization requirements, underscoring the government’s commitment to revitalizing domestic manufacturing and achieving localization goals.
In the contemporary landscape, achieving carbon neutrality has garnered global consensus. As nations worldwide enthusiastically endorse clean energy initiatives, the synergy of energy storage technology with clean energy sources is poised for substantial growth, driven by market forces and policy incentives. Recognizing the pivotal role of the energy storage sector in driving the localized advancement of new energy technologies, the U.S. federal government has bolstered the competitiveness of this technology. Apart from the dominant lithium battery energy storage, emerging technologies such as lead-carbon batteries, zinc-based batteries, and hydrogen energy storage are set to be showcased and promoted in the market. This proliferation of technologies will usher in a more diversified landscape within the energy storage market, supporting its multifaceted development.
