Rollout of energy storage in the USA doubled last year (in megawatt-hours), driven by the utility-scale market – and 2017 is expected to be another solid year.
GTM Research and the Energy Storage Association’s U.S Energy Storage Monitor 2016 Year in Review states 336 megawatt-hours of storage was deployed in 2016, doubling the megawatt-hours commissioned in 2015.
The last quarter of 2016 saw 230 megawatt-hours rolled out in Q4 – two-thirds of the annual total. Leading the states in the final quarter was California, which accounted for 88 percent of all installed energy storage capacity.
California’s uptake was primarily due to the Aliso Canyon gas leak, a massive natural gas leak discovered in October last year. An estimated 97,100 tonnes of methane and 7,300 tonnes of ethane escaped during the crisis; the worst single natural gas leak in U.S. history. Unavailability of the gas storage facility led to the rapid commissioning of battery storage in order to avoid power failures during winter.
GTM says 2016 was also transformational in terms of applications, with a shift from short-duration ancillary services to longer-duration capacity requirements.
While utility-scale storage stole the limelight, commercial and residential battery systems represented 25 percent of capacity installed in 2016 and is expected to represent 52% of the annual storage market in 2022.
With regard to storage technology, Lithium-ion chemistries represented at least 97 percent of all energy storage capacity deployed in 2016. Lithium-ion is the chemistry used in battery systems including Tesla Powerwall 2, sonnenBatterie Eco and Enphase AC Battery.
“The energy storage industry is rapidly maturing, and in 2016 we saw that growth take hold in a significant way,” said Matt Roberts, executive director of the Energy Storage Association.
Looking ahead, U.S. energy storage capacity is forecast to reach 7.3 gigawatts in 2022, valued at a whopping $3.3 billion. Cumulative 2017-2022 storage market revenues will exceed $11 billion.
However, a rosy future for energy storage isn’t set in stone.
“2017 will be a similarly critical year for energy policy and market changes,” states the report’s executive summary. ” As the new Trump administration fills out its energy and environment teams, the process will be a source of immense anxiety for the energy community.”
Further details from the U.S Energy Storage Monitor 2016 Year in Review can be viewed here.
