The US grid-scale energy storage market set a first-quarter record for capacity installed in 2024, with 993MW deployed.
According to Wood Mackenzie and the American Clean Power Association’s (ACP) newly released US Energy Storage Monitor report.
Nevada, California, and Texas accounted for 90% of new grid-scale capacity added.
Q1 installation additions of 993MW in the grid-scale segment represent a 101% increase over Q1 2023.
The grid-scale segment is forecasted to end 2024 with 11.1GW installed, a 45% increase year-over-year.
Texas will overtake California of new capacity installed (in MW terms) this year as price volatility continues to grow under both, expanding renewables and load growth in the less regulated market.
“The rapid growth of the energy storage industry comes at a critical time, providing a solution to growing energy demand and increasingly variable weather conditions that are placing added stress on the grid.” said John Hensley, Vice President of Markets and Policy Analysis at ACP.
“A strong start to 2024 sets expectations high for the remainder of the year.
“We look forward to celebrating the industry’s first double digit installation year and cheering the tight race for top storage state playing out between California and Texas.”
Storage costs from the cell- to block-level continue their steady decline-not only as a direct result of lithium cost declines, but also because of global supply chain dynamics like oversupply and marketplace competition.
The US energy storage market is expected to see 12.9GW deployed across all segments in 2024.
New capacity additions are due to break the 10GW mark for the first time ever, with 75GW forecasted across all segments through to 2028, according to the report.