US Utilities Embrace Battery Storage for Electricity Price Optimization – EIA Report

utilities in the United States are increasingly turning to storage to manage electricity price differentials, a practice known as arbitrage, according to new data from the (EIA).

By the end of 2023, US utilities had deployed 575 batteries with a total capacity of 15,814 megawatts (MW). Projections from the EIA suggest that this capacity will more than triple by the end of 2028, with an expected addition of 35,953 MW based on utility plans.

The EIA's early release of data from its EIA-860 Annual Electric Generator Report provides detailed insights into battery storage applications, including their primary use cases and configurations.

Arbitrage emerges as the predominant use for 10,487 MW of battery capacity, highlighting its role in helping utilities buy electricity during off-peak hours and sell it during peak demand periods to maximize revenue.

In addition to arbitrage, batteries also contribute significantly to reliability by providing ancillary services like frequency regulation, essential for stabilizing electricity transmission.

This data release marks a new approach by the EIA to categorize batteries based on their primary utility function, aiming to offer a clearer view of how utilities are integrating to optimize operations in the evolving energy landscape.



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