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New Report by GTM Research, Energy Storage Association Finds "biggest quarter in history for the U.S. energy storage market"

3 min. read

According to a new report by the Energy Storage Association (ESA) and GTM Research, the U.S. energy storage industry is on fire, having just "deployed 71 MW of energy storage in Q1 2017...up 276% from the 18.9 MW deployed in Q1 2016," and with a lot more growth on the way. See below for more details from the new report. Also, for more exciting news on the energy storage front, see Nevada Just Became the Most Exciting State for Energy Storage Policy (bolding added for emphasis):

Nevada jumped to the vanguard of energy storage policy after passing a revision to its state renewable energy targets.

In the past week, state legislators deputized the Public Utilities Commission to investigate whether it is in the public interest to require an energy storage procurement by utilities...

...Nevada tucked even more goodies into a bill updating the state renewable portfolio standard. If Governor Brian Sandoval signs AB 206, it will raise the state's RPS from 25 percent renewables by 2025 to 40 percent by 2030. And storage will play a role that no state has thus far attempted...

"I am astounded at the amount of progress that Nevada legislators have made in such a short amount of time to catapult their state into the leadership of storage policy in the United States," said Jason Burwen, policy and advocacy director at the Energy Storage Association industry group.

The new policies leap-frog Nevada into the ranks of important storage markets like Arizona, Hawaii, Massachusetts, New York and Washington, behind the national leader, California, said Ravi Manghani, energy storage director at GTM Research.

"Great work by Nevada clean energy advocates and the Energy Storage Association on this accomplishment in the Silver State. And more broadly, congratulations to ESA and its members on the booming U.S. energy storage industry, “ said Mark Sokolove, Tigercomm EVP. "It’s encouraging to see how, despite the president's decision to withdraw the United States from the Paris climate accords, cities, states and companies are strongly committed to pro-jobs, climate-friendly policies -- such as what we're seeing in Nevada. That’s because clean energy policy investments make economic sense, plain and simple. Cleantech communicators should aim to continue boosting the volume and frequency that storyline."

With that, here are a few highlights from the executive summary of the new report by ESA and GTM Research.

  • As noted above, "The U.S. deployed 71 MW of energy storage in Q1 2017, a 50% decrease from the 140.8 MW deployed in Q4 2016 and up 276% from t he 18.9 MW deployed in Q1 2016. This follows the trend of the first quarter of each year generally seeing a smaller megawatt deployment level after an active fourth quarter."
  • "The U.S. deployed 233.7 MWh in Q1 2017, a 2% increase over Q4 2016 and up 944% over Q1 2016, when 22.4 MWh were deployed. Q1 2017 marked a record quarter in MWh terms, breaking the record set in the previous quarter."
  • "Lithium-ion batteries dominated the energy storage market for the tenth straight quarter, holding 96.5% of the market in Q1 2017. The majority of utility-scale projects deployed in Q1 2017 employed lithium-ion chemistry, and the technology is also favored in the behind-the-meter segment. Growing acceptance of lithium-ion is expected to cause this trend to continue over the next few years."
  • "At ESA’s 27th Annual Conference and Expo in Denver in April 2017, Matt Roberts, ESA's executive director, laid out a bold vision for advanced energy storage’s future, calling for 35 GW to be deployed in the United States by 2025." Roberts "cited cost declines, market and regulatory reforms, and increasing recognition of the diverse value of storing energy as drivers for this growth."
  • "GTM Research expects the U.S. energy storage market to grow to roughly 2.6 GW in 2022, almost 12 times the size of the 2016 market (221 MW)."
  • "The behind-the-meter segment represented 20% of the 2016 market. This will grow to 53% of the annual storage market by 2022."
  • "The next one to two years will be key as energy storage is being actively examined nationwide at the state, ISO and federal level, and the decisions made now will determine how the market looks eight years from now."



Topics: Clean Economy