popular articles

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.
Énergie renouvelable avenir dynamique

Please share:

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.

Register free of charge for uninterrupted access.

Publicite

Recently published in

Inlyte Energy and HORIEN have entered into an agreement to accelerate the large-scale production of iron-sodium batteries, with a first facility planned in the United States by 2027.
TotalEnergies has started construction on six new battery projects in Germany, representing 221 MW of capacity and a €160mn investment, strengthening its presence in the German power market.
TotalEnergies has started construction on six new battery projects in Germany, representing 221 MW of capacity and a €160mn investment, strengthening its presence in the German power market.
Copenhagen Infrastructure Partners has signed a strategic agreement with GC Storage Services to develop 2.3 GW of battery storage capacity across northern and southern Italy.
Copenhagen Infrastructure Partners has signed a strategic agreement with GC Storage Services to develop 2.3 GW of battery storage capacity across northern and southern Italy.
Energy Vault has completed the acquisition of the Stoney Creek energy storage system, a project supported by a long-term contract, further strengthening its position in the energy storage sector in Australia.
Energy Vault has completed the acquisition of the Stoney Creek energy storage system, a project supported by a long-term contract, further strengthening its position in the energy storage sector in Australia.
Jupiter Power has secured $286 million in financing to support the construction of two large-scale battery energy storage projects in the United States, with commercial operations expected to begin this year.
Harmony Energy has completed the sale of a 200 MW battery energy storage project to EDF Renewables Polska, strengthening its position in the Polish market while supporting the country’s energy transition.
Harmony Energy has completed the sale of a 200 MW battery energy storage project to EDF Renewables Polska, strengthening its position in the Polish market while supporting the country’s energy transition.
The global battery market continues its rapid expansion, driven by falling prices and increasing production capacities, leading to heightened competition among major global producers.
The global battery market continues its rapid expansion, driven by falling prices and increasing production capacities, leading to heightened competition among major global producers.
Swedish battery manufacturer Northvolt has filed for bankruptcy, citing financial difficulties exacerbated by market instability and rising costs. This bankruptcy raises questions about the viability of European battery production in the face of Asian competition.
Swedish battery manufacturer Northvolt has filed for bankruptcy, citing financial difficulties exacerbated by market instability and rising costs. This bankruptcy raises questions about the viability of European battery production in the face of Asian competition.
Billion Watts Technologies Co., Ltd. and Shinshin Credit Corporation have commissioned a 64 MW energy storage facility in March, enhancing Taiwan’s power grid stability and supporting the increasing integration of renewable energy.
The U.S. lead battery industry supports 106,050 direct jobs and generates annual economic output reaching USD 35 billion, according to a recent independent economic analysis focusing on 2023 data.
The U.S. lead battery industry supports 106,050 direct jobs and generates annual economic output reaching USD 35 billion, according to a recent independent economic analysis focusing on 2023 data.
The United States has reached a record amount of battery storage, totaling 19 gigawatts in its finalization phase. Sustained investments and regional strategies confirm the rapid growth of this market, which is essential for the reliability of the electric grid.
The United States has reached a record amount of battery storage, totaling 19 gigawatts in its finalization phase. Sustained investments and regional strategies confirm the rapid growth of this market, which is essential for the reliability of the electric grid.
Base Power partners with Bandera Electric Cooperative to deploy a home energy storage programme aimed at optimising grid performance while providing an affordable backup solution for Texan households.
Base Power partners with Bandera Electric Cooperative to deploy a home energy storage programme aimed at optimising grid performance while providing an affordable backup solution for Texan households.
RENEW Energy Partners and Kinsley Energy Systems join forces to deploy battery storage systems, with $100 million in projects underway in the US Northeast, providing commercial and industrial enterprises with turnkey solutions to optimise energy costs and enhance operational resilience.
Eos Energy has secured an $8 million contract to supply energy storage systems to the San Diego naval base, aimed at supporting the resilience of Navy operations and strengthening national security.
Eos Energy has secured an $8 million contract to supply energy storage systems to the San Diego naval base, aimed at supporting the resilience of Navy operations and strengthening national security.
Alabama Power will invest in a 150 MW battery energy storage system at the site of the former Gorgas power plant in Walker County, aiming to enhance the state’s electrical grid resilience.
Alabama Power will invest in a 150 MW battery energy storage system at the site of the former Gorgas power plant in Walker County, aiming to enhance the state’s electrical grid resilience.
A study by FenEx CRC confirms the feasibility of transporting CO2 at low pressure and temperature, a breakthrough that could accelerate the commercial viability of carbon sequestration in Australia.
A study by FenEx CRC confirms the feasibility of transporting CO2 at low pressure and temperature, a breakthrough that could accelerate the commercial viability of carbon sequestration in Australia.
Merdeka Battery Materials has secured $1.4 billion in financing to build a nickel plant in Indonesia. This project, supported by a banking consortium, aims to meet the growing demand for lithium-ion battery materials used in electric vehicles.
AMEA Power has signed agreements with the Egyptian government to build two battery energy storage stations (BESS) in Egypt, with a total capacity of 1,500MWh, to improve grid stability and facilitate the integration of renewable energy sources.
AMEA Power has signed agreements with the Egyptian government to build two battery energy storage stations (BESS) in Egypt, with a total capacity of 1,500MWh, to improve grid stability and facilitate the integration of renewable energy sources.
Entech has signed a contract worth over €30m for the construction of battery energy storage systems. The project, with a total capacity of 50 MW/100 MWh, will be deployed across several sites in France between 2025 and 2026.
Entech has signed a contract worth over €30m for the construction of battery energy storage systems. The project, with a total capacity of 50 MW/100 MWh, will be deployed across several sites in France between 2025 and 2026.
Acen Australia has started construction of a 200 MW/400 MWh battery energy storage system (BESS) co-located at the 720 MW New England site in New South Wales, Australia, aimed at enhancing grid stability.
Acen Australia has started construction of a 200 MW/400 MWh battery energy storage system (BESS) co-located at the 720 MW New England site in New South Wales, Australia, aimed at enhancing grid stability.
Pacific Green Technologies has finalised the sale of its Limestone Coast North energy storage project to Intera Renewables for A$460mn (US$293mn). The agreement stipulates that Pacific Green will oversee construction before Intera assumes asset management.
In Bollingstedt, a new battery storage facility aims to power 170,000 households, illustrating Germany’s strategy to strengthen its energy infrastructure and stabilise its grid amid the rise of renewable energy sources.
In Bollingstedt, a new battery storage facility aims to power 170,000 households, illustrating Germany’s strategy to strengthen its energy infrastructure and stabilise its grid amid the rise of renewable energy sources.
BW ESS and Sungrow announce the commercial operation of the 100 MW Bramley battery energy storage project, further strengthening the UK's energy security and resilience against grid challenges.
BW ESS and Sungrow announce the commercial operation of the 100 MW Bramley battery energy storage project, further strengthening the UK's energy security and resilience against grid challenges.
A new joint report from Deloitte and CAS highlights market and innovation trends in the lithium-ion battery recycling industry, crucial to sustainable energy transition.
A new joint report from Deloitte and CAS highlights market and innovation trends in the lithium-ion battery recycling industry, crucial to sustainable energy transition.

Advertising