In a recent announcement on Tuesday, the Energy Information Administration (EIA) projected an 89% surge in U.S. battery storage capacity by the conclusion of 2024, provided that all slated energy storage systems come online as scheduled.
The fundamental principle behind battery storage involves the accumulation of surplus power during periods of low electricity demand, subsequently releasing it during peak demand hours.
As of 2023, the total utility-scale battery capacity—both operational and planned—stood at approximately 16 gigawatts (GW). Developers are gearing up to augment this capacity by an additional 15 GW in 2024, with a target of reaching 30 GW by the year's end, according to the EIA.
California and Texas, boasting significant existing and planned solar and wind capacity, are driving the escalating demand for battery storage. Presently, California holds 7.3 GW of installed battery storage capacity, while Texas follows closely with 3.2 GW.
The Electric Reliability Council of Texas, in a statement released in December, anticipates the availability of approximately 4.46 GW of battery storage by July 2024.
Despite the optimistic outlook, the landscape is not without challenges. Large-scale battery projects are grappling with prolonged lead times due to disruptions in the supply chain, extending completion timelines to 12 to 18 months—nearly six months longer than initially planned. This hiccup poses a potential obstacle to the seamless realization of the projected surge in battery storage capacity.