The U.S. grid-scale energy storage market achieved a significant milestone in the first quarter of 2024, setting a record with 993 megawatts (MW) of new capacity deployed, according to the latest U.S. Energy Storage Monitor report by Wood Mackenzie and the American Clean Power Association (ACP).
Nevada, California, and Texas emerged as frontrunners, collectively accounting for 90% of the new capacity additions. This surge marks a notable 101% increase compared to the first quarter of the previous year.
The report forecasts the grid-scale segment to reach 11.1 gigawatts (GW) installed by the end of 2024, reflecting a robust 45% year-over-year growth. Notably, Texas is poised to surpass California in new capacity installations this year, driven by increasing price volatility amidst expanding renewable energy projects and heightened demand in its less regulated market.
John Hensley, Vice President of Markets and Policy Analysis at ACP, highlighted the pivotal role of energy storage in meeting growing energy demands and mitigating the impact of unpredictable weather patterns on the grid. “The rapid growth of the energy storage industry comes at a critical time, providing a solution to growing energy demand and increasingly variable weather conditions that are placing added stress on the grid,” Hensley remarked.
The declining costs of storage technologies, influenced by reductions in lithium prices and competitive dynamics in the global supply chain, continue to drive industry expansion. The report projects a total deployment of 12.9 GW across all segments of the U.S. energy storage market in 2024, with further growth anticipated to exceed 75 GW by 2028.
With expectations high following a strong start to the year, industry experts anticipate 2024 to mark the first year of double-digit installations, underscoring the sector's pivotal role in the evolving energy landscape.
