A report by Wood Mackenzie Power & Renewables, an analysis group, states that this year about 12GWh of energy storage may be installed in the United States, adding that the market will grow considerably in the near future. This forecast was included in the group’s most recent energy storage monitor report, which was published in collaboration with the National Energy Storage Association.
The group predicts that while last year’s deployments were about 3500megawatt hours, five years from now, the United States will be a 33,000 megawatt hours’ annual market, with a value of about $8.5 billion. In the first quarter of this year, the analytics firm reported that the activation of some front-of-meter, large-scale energy storage systems helped increase recorded deployments to roughly 910 megawatt hours.
With the support of the Biden administration and other senior government officials, many are hopeful that an investment tax credit subsidy, which has assisted in the growth of the solar PV industry, could be established for standalone energy storage systems. At the moment, the investment tax credit only applies to storage if deployed along with solar, which has helped grow project developer interest in solar and storage hybrid resources.
The report also included a model of how the market would look if investment tax credit was introduced and a direct-pay option to speed up and simplify the effect of the incentive to invest was included. The report noted that a standalone energy storage investment tax credit could grow the energy storage market size in megawatt terms by roughly 25% in the next five years. Additionally, including the direct-pay option would expedite the economic viability of various projects by two to four years.
However, the largest effect would be seen in the front-of-meter market, which would come up with an extra 6 gigawatts for deployment by 2025, residential storage by roughly 170 megawatts and nonresidential community and commercial storage by 700 megawatts.
Chloe Holden, an energy storage analyst at the analysis group, argues that an investment tax credit could also boost the energy storage market, which was already growing at a rapid rate.
A report released by BloombergNEF in 2020 shows that the cost of energy storage is decreasing fast, with Li-ion battery cells having diminished in price by nearly 90% over the last 10 years. A separate report released by the National Renewable Energy Laboratory also discovered that diurnal storage’s installed capacity is expected to grow considerably in the next three decades, noting that between 125 gigawatts and nearly 700 gigawatts could be installed during this period.
Many companies, including StorEn Technologies Inc., are working to improve energy storage systems such as the vanadium flow batteries, and these options could boost the uptake of these storage systems for different applications.
NOTE TO INVESTORS: The latest news and updates relating to StorEn Technologies Inc. are available in the company’s newsroom at https://ibn.fm/StorEn
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