The U.S. energy storage market reached a new milestone in Q3 2023, reporting the highest quarterly capacity installations to date, with 7322 MWh becoming operational during this period, as per the findings of the latest US Energy Storage Monitor report by Wood Mackenzie and the American Clean Power Association (ACP).
The report reveals a 27% quarter-on-quarter increase in installations within the grid-scale segment, reinforcing the pivotal role of energy storage in shaping the future of the nation's energy mix.
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Frank Macchiarola, ACP Chief Policy Officer, commented on the sector's rapid growth, emphasizing energy storage's crucial role in enhancing reliability and American energy security. Macchiarola noted the industry's potential to serve as the backbone of the modern grid and called for streamlined permitting and evolving market rules to further accelerate storage resource deployment.
The cumulative volume of installations between Q1 and Q3 2023 has already exceeded the total volume for the entirety of 2022, reaching 13,518 MWh compared to the 11,976 MWh recorded last year.
Vanessa Witte, Senior Research Analyst with Wood Mackenzie's energy storage team, pointed out that despite the Q3 installation record, delays affected approximately 80% of projects initially expected during this period. She highlighted the potential for even greater Q3 installations if not for these delays.
The report also forecasts the U.S. storage market to install around 63 GW between 2023 and 2027 across all segments, representing a 5% decline from the Q2 forecast. While the grid-scale segment's 2023 forecast slightly increased due to strong Q3 volume, the remaining forecast decreased by 7% on average. Witte attributed these declines to challenges in supply, permitting, and the backlog of applications in ISOs interconnection queues, causing obstacles in project development.
The data underscores the dynamic nature of the energy storage sector, indicating both remarkable growth and challenges that require strategic considerations for sustainable development in the coming years.
