The US energy storage market saw 4236MW installed in the final quarter of 2023, an 100% increase from Q3, according to a new report.
For the first time, the grid-scale segment exceeded 3GW deployed in one quarter and nearly topped 4GW, according to Wood Mackenzie and the American Clean Power Association’s (ACP) latest US Energy Storage Monitor report.
With 3983MW of new capacity additions, the quarter saw a 358% increase compared to the same period in 2022.
John Hensley, ACP’s vice president of markets and policy analysis, said: “The energy storage industry continues its incredible growth trajectory, with a record quarter helping drive home a banner year for the technology.
“These additions bring with them critical benefits to our power grid.
“Energy storage has unique capabilities to address grid resilience, with the ability to serve as generation, load, and transmission.
“These benefits to the grid have been evident, especially in recent years, as storage has provided reliability and stability during critical moments like historic heatwaves.
“With a robust pipeline, the future for energy storage deployment is strong.”
Vanessa Witte, senior analyst with Wood Mackenzie’s energy storage team, added: “Q4 2023 was extremely strong for the US energy storage market, helped by easing supply chain challenges and system price declines.
“The quarter was commanded by deployments in the grid-scale segment, which recorded the highest quarter-on-quarter growth of any segment, ending the year with a 113% increase over Q3 2023.
“California continued to lead installations in both MW and MWh terms, closely followed by Arizona and Texas.
“Total grid-scale installations reached 7910MW and 24,000MWh for 2023, which is a 98% increase over 2022 installations.
“Our updated five-year forecast now extends to 2028 and projects 59 GW of new capacity additions in that timeframe.”