The US storage market hit a new high in Q3 2023, installing the most capacity in a quarter to date with 7322MWh becoming operational during this period.
Wood Mackenzie and the American Clean Power Association’s (ACP) latest US Energy Storage Monitor report found that the US grid-scale segment saw quarterly installations increased 27% quarter-on-quarter.
ACP chief policy officer Frank Macchiarola, said: “Energy storage deployment is growing dramatically, proving that it will be essential to our future energy mix.
“With another quarterly record, it’s clear that energy storage is increasingly a leading technology of choice for enhancing reliability and American energy security.
“This industry will serve as the backbone of our modern grid.
“As we continue to build a strong domestic supply chain, streamlined permitting and evolving market rules can further accelerate the deployment of storage resources.”
The cumulative volume installed between Q1 and Q3 of this year, which totals 13,518 MWh, has already surpassed the total volume in all of 2022 which ended at 11,976 MWh.
Vanessa Witte, senior research analyst with Wood Mackenzie’s energy storage team, added: “However, the Q3 installation record could have been greater were it not for the roughly 80% of projects in the pipeline expected for Q3 being delayed to a later date.”
The US storage market is forecasted to install approximately 63GW between 2023 and 2027 across all segments, a 5% decline from the Q2 forecast, according to the latest report.
For grid-scale, while the segment’s 2023 forecast increased just slightly due to strong Q3 volume, the remainder of the forecast lowered by 7% on average.
Witte said: “The segment is facing multiple headwinds that have emerged this year, resulting in a volatile near-term pipeline and difficulty in bringing projects to mechanical completion.
“Grid-scale declines were more focused on challenges not only with supply and permitting, but also with the backlog of applications in most ISOs interconnection queues that are preventing projects to move through the development process.”