The Skyrocketing Battery Build

Battery Storage in the United States: An Update on Market Trends

August 16, 2021 (Energy Information Administration/U.S. Department of Energy)

“…[Electric power markets in the United States are undergoing significant structural change that is likely to] result in the installation of the ability of large-scale battery storage to contribute 10,000 megawatts to the grid between 2021 and 2023—10 times the capacity in 2019…The number and total capacity of large-scale battery storage systems continue to grow…[2019’s 163 large-scale battery storage systems was] a 28% increase from 2018…[More than 60% of 2019’s] large-scale battery system capacity to store energy or provide power to the grid in the United States was located in areas covered by regional grid operators PJM Interconnection (PJM) and California Independent System Operator (CAISO)…

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Small-scale battery storage also continues to grow, especially in California…In 2019, 402 MW of small-scale total battery storage power capacity existed in the United States…California accounts for 83%...The costs of installing and operating large-scale battery storage systems in the United States have declined in recent years…[2019’s average battery energy storage capital costs were $589 per kilowatthour…[B]attery storage costs fell by 72% between 2015 and 2019, a 27% per year rate of decline...

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…[Most new large-scale battery energy storage systems over the next three years are likely] to be built at power plants that also produce electricity from solar photovoltaics…Almost one-third of U.S. large-scale battery storage additions will come from states outside of regional grid operators PJM and CAISO… click here for more

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