SUBSCRIBE
PROFILE

Rapid Expansion of Battery Storage in the United States: Prospects and Challenges

The year 2023 marks a spectacular 53.3% growth in battery storage capacity in the USA, with significant implications for the energy industry.

Share:

Énergie renouvelable avenir dynamique

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

SUBSCRIBE - 99$/year

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

The year 2023 saw a significant increase in battery storage capacity in the USA, reaching 14.689GW at the end of the third quarter, despite only half of the planned installations being commissioned.

Falling Lithium Prices and Market Implications

In the third quarter (Q3), 1,909GW of capacity was added, representing an increase of 16% on the second quarter. These data, compiled by S&P Global Commodity Insights from various government repositories, include facilities that have commenced commercial operation or are synchronized to the grid. The California Independent System Operator dominates the US market with 6,966GW, or 47.4% of total capacity. This regional dominance underlines California’s leadership in the energy storage sector.

Major Projects and Capacity Additions in Q3

At the same time, prices for lithium, an essential metal in battery manufacture, continued to fall in Q3, remaining below their historical peaks of 2022. Prices for lithium carbonate and lithium hydroxide have fallen by 70% and 72% respectively since the start of the year, reaching their lowest levels since October 2021.

Dominance of NextEra Energy Resources in the Sector

After a quieter second quarter, the Electric Reliability Council added the most capacity in Q3, with 763.4MW, closely followed by CAISO with a similar volume. The Western Electricity Coordinating Council added 531MW, representing 27.8% of Q3 additions.

Expanding the Pipeline of Battery Storage Projects

Major projects finalized during the period included several major installations in California, Texas and Arizona, with NextEra Energy Resources’ Desert Peak Energy Storage project in California standing out as the third largest battery storage facility in operation in the USA.
NextEra Energy Resources continues to dominate the US market with 2.814GW of operating capacity after adding 980MW in Q3. Vistra Energy and Axium Infrastructure follow, with capacities of 1.023GW and 733MW respectively.

The rapid development of battery storage capacity in the USA underlines both the potential and the challenges of this essential technology. As the market continues to grow, questions of cost, viability and grid integration remain paramount to the future of energy storage.

  • Popular on energynews.pro
AfDB grants $7.41mn to Liberia to complete hydroelectric power plant
South Korea under pressure from the IEA to liberalise its electricity market
Iberdrola launches a public offer to acquire 100% of Neoenergia in Brazil
Iberdrola reshapes its portfolio to become a leader in transatlantic regulated networks
KEPCO and ENEC strengthen alliance on nuclear and artificial intelligence
EVE Energy signs agreement to deploy 1.48 GWh of storage in Northern Europe
Chinese manufacturer EVE Energy has signed a three-year memorandum of understanding with Sweden’s Vimab BESS AB to supply batteries and energy storage solutions in Northern Europe.
Huawei receives top appraisal for its BESS safety assessment system
Huawei's full-lifecycle battery safety rating system has been officially validated by a national technical committee, marking a key milestone for large-scale energy storage deployment.
InCommodities signs 15-year storage deal with AMPYR in Australia
AMPYR Australia and InCommodities have signed a 15-year partnership for the Bulabul BESS project, marking the Danish trader’s first long-term commitment in the Australian energy storage market.
Tokyo Gas and Okaya launch 75 MWh BESS project in Hokkaido
Tokyo Gas and Okaya & Co. will begin construction in December 2025 of a 25 MW/75 MWh battery energy storage system in Hokkaido, with commercial operations expected in 2028 or later.
CETY secures $10mn battery storage project in New York
US-based CETY has been awarded a $10mn contract to build a battery energy storage system in New York State, marking the first in a series of planned installations across the region.
Engie secures 280 MW battery storage contract in India for 2027
French energy group Engie wins its second-largest global battery storage project with a capacity of 280 MW, awarded by a state-owned company in Gujarat, India.
Nostromo and Olivine integrate thermal storage system into California’s energy market
Nostromo’s IceBrick system becomes the first behind-the-meter thermal storage device to participate in California’s wholesale energy market, in partnership with Olivine, marking a milestone for commercial buildings.
Pacific Green secures permit for 1GW battery park in Portland
Pacific Green has received approval from the Victorian government for its second energy storage park in Australia, a 1GW project to be developed over 36 months in Portland’s industrial zone.
TagEnergy invests in a 150 MW storage system in Australia
TagEnergy launches a 150 MW storage project at the Golden Plains wind farm site, strengthening its investment strategy in Australia's energy infrastructure.
CATL, Marubeni and Sun Village launch 2.4GWh storage project in Japan
CATL, Sun Village and Marubeni Power Retail have signed an agreement to develop 2.4GWh of grid-scale storage capacity in Japan, without a defined schedule, leveraging investment, construction and commercial management synergies.
Northland Power invests in 300 MW battery storage through deal in Poland
Northland Power has acquired two energy storage projects in Poland from Greenvolt Power Group, consolidating a strategic partnership in a transitioning market.
Battery storage market projected to reach $99.67bn by 2033
The global battery energy storage systems market anticipates 28.8% annual growth through 2033, supported by industrial electrification, government incentives and grid modernisation efforts.
Group1 and MPSC join forces to build a fully American potash-to-battery supply chain
Group1 and Michigan Potash & Salt Company have signed an agreement to create a domestic potassium-based battery supply chain, relying on local mining and production free from critical metals.
Japan commissions first 4MWh grid battery in Shiga Prefecture
A battery storage project developed in Shiga Prefecture marks a new step for the Japanese industry, with the official commissioning of a 4MWh facility aimed at the primary balancing market.
au Renewable Energy invests in nine high-voltage storage sites in Japan
Nine battery storage projects totalling 18MW will be built by au Renewable Energy across the Chubu, Kansai and Kyushu regions, with commissioning scheduled through March 2027.
ACEnergy secures approval for 500 MW battery project in Bouldercombe
ACEnergy’s Central BESS project has been approved with a $3.6mn benefit-sharing plan for local and Indigenous communities.
Fullmark Energy transfers $46mn tax credit for California storage portfolio
Operator Fullmark Energy has finalised a $46mn investment tax credit transfer linked to its 125MW Redwood storage portfolio in Southern California, strengthening its ability to pursue further growth in the sector.
Eos Energy raises $76.9mn through exercised public warrants ahead of expiry
Eos Energy confirmed the expiry of its public warrants following the exercise of 6.7 million units, generating $76.9mn to finance its industrial projects in the United States.
Trina Storage signs agreement with Pacific Green for 5GWh of energy storage
Trina Storage and Pacific Green Energy Group have signed a memorandum of understanding for the supply of 5GWh of battery systems by 2028, reinforcing their activities in the Australian and international energy storage market.
HyperStrong secures 200 GWh of CATL batteries in ten-year strategic agreement
HyperStrong commits to purchase at least 200 GWh of battery cells from CATL by 2028, as part of a strategic partnership aimed at structuring a global energy storage ecosystem.

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

START - 99$/year

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.