In the final quarter of 2023, the US energy storage market witnessed a staggering surge, with 4236MW installed, marking a remarkable 100% increase from the previous quarter, according to a report released today.
The report, jointly conducted by Wood Mackenzie and the American Clean Power Association (ACP), revealed that for the first time, the grid-scale segment surpassed 3GW deployed in a single quarter, nearly reaching the milestone of 4GW.
John Hensley, Vice President of Markets and Policy Analysis at ACP, emphasized the significance of this growth, stating, “The energy storage industry continues its incredible growth trajectory, with a record quarter helping drive home a banner year for the technology.”
Highlighting the critical benefits to the power grid, Hensley noted, “Energy storage has unique capabilities to address grid resilience, with the ability to serve as generation, load, and transmission.”
Vanessa Witte, Senior Analyst at Wood Mackenzie's energy storage team, underscored the strength of the market in Q4 2023, attributing it to the alleviation of supply chain challenges and declines in system prices.
“Q4 2023 was extremely strong for the US energy storage market,” Witte remarked. “The quarter was commanded by deployments in the grid-scale segment, which recorded the highest quarter-on-quarter growth of any segment.”
California emerged as the leader in installations both in terms of MW and MWh, closely followed by Arizona and Texas, according to the report.
Witte provided insight into the overall trajectory, stating, “Total grid-scale installations reached 7910MW and 24,000MWh for 2023, which is a 98% increase over 2022 installations.”
Furthermore, the report's updated five-year forecast extends to 2028, projecting an impressive 59GW of new capacity additions within that timeframe.
