Report expects rapid growth in U.S. energy storage in upcoming years

Almost 41 MW of energy storage was deployed in the United States during the second quarter of 2015, and while that might not sound huge, it is a nine-fold increase from 2Q14 and a six-fold increase from the first quarter of this year, according to a recent report from GTM Research (GTM) and the Energy Storage Association (ESA).

The PJM Interconnection (PJM) is tops in total deployment in the nascent energy utility-scale energy storage market with only 101.2 MW. California is second at 35.8 MW.

That’s part of the findings outlined Sept. 3 in the U.S. Energy Storage Monitor, which is published by the two organizations.

“We expect significant growth in the U.S. energy storage market over the next five years across all sectors, resulting in an 858 MW annual market in 2019 – 13 times the size of the 2014 market, and four times the size of 2015,” according to the report.

Energy storage’s growth goes hand-in-hand with a variety of state efforts designed to encourage the growth of renewable power and micro-grids.

Energy storage incentive programs have been announced or proposed in states including Arizona, California, Hawaii, Maryland, Massachusetts, Minnesota, New York, New Jersey and Oregon.

The report also notes that legislation has been introduced in the U.S. Senate to create micro-grids in isolated communities. In Texas a bill has been proposed offering an ad valorem tax benefits for large-scale energy storage. That Texas bill has been amended to specifically include only compressed-air energy storage.

Looking toward the heavens, the National Aeronautics and Space Administration (NASA) has issued technology roadmaps including a provision for research to improve energy storage systems.

“We report energy storage capacity data in three segments: Residential, non-residential and utility-scale,” according to the U.S. Energy Storage Monitor. The utility-scale segment of the energy storage market accounts for 87% of the market.

http://energystorage.org/news/esa-news/us-deployed-41mw-storage-q2-2015-best-quarter-25-years

About Wayne Barber 4201 Articles
Wayne Barber, Chief Analyst for the GenerationHub, has been covering power generation, energy and natural resources issues at national publications for more than 20 years. Prior to joining PennWell he was editor of Generation Markets Week at SNL Financial for nine years. He has also worked as a business journalist at both McGraw-Hill and Financial Times Energy. Wayne also worked as a newspaper reporter for several years. During his career has visited nuclear reactors and coal mines as well as coal and natural gas power plants. Wayne can be reached at wayneb@pennwell.com.