The Energy Information Administration (EIA) released a recent report on battery storage capacity showing rosy but realistic numbers for the years to come. From next year to 2025, the agency expects that another 20.8 gigawatts (GW) of battery storage capacity will become available. The U.S. currently has 7.8 GW of storage capacity, though an additional 1.4 GW could come online by the end of the year. This marks a major escalation in scaling up battery storage facilities for utilities, especially—and much of this is because of what experts believe is an “inflection point” reached by renewables.
“What you’re seeing here is a technology starting to reach its inflection point,” Advanced Energy Economy Managing Director Ryan Katofsy told the Houston Chronicle. “Costs are down, performance is improved. There’s more awareness of the qualities (batteries) provide.” The paper also smartly notes that excess power generated by wind especially is what has states like Texas eying additional battery storage in order to reap the most benefits out of renewables, both financially and in terms of grid reliability.
Campaign Action
Texas and California will see the most battery storage facility projects in the coming years, accounting for more than 75% of the storage planned to come online by 2025, according to the EIA. Around two dozen projects are planned in total. Plenty of other states have a vested interesting in not only overhauling their power grids but making them more robust through renewables. Wisconsin recently unanimously approved the state’s Public Service purchase of the Darien Solar Energy Center, which will bring enough power for 75,000 homes as well as battery storage for up to 75 megawatts of power.
NV Energy, the state of Nevada’s largest utility, has plans for a battery storage project that could bring a two-hour energy storage system to its grid. The system is designed to take the pressure off the utility during peak load hours and could help substantially in the summer, when power use is particularly high. With so many gains for renewables expected in the next few years as well, it only makes sense that utility-scale battery storage would also experience a boom.
Some of this has to do with impending investment tax credits from the Inflation Reduction Act. A suite of incentives are being offered for both renewables and battery storage, including such credits, outright direct-pay options for tax-exempt groups, and manufacturing credits. The Biden administration is serious about the renewables transition and willing to put its money where its mouth is, making a huge difference as it eyes its goal of reaching net-zero by no later than 2050.
“What you’re seeing here is a technology starting to reach its inflection point,” Advanced Energy Economy Managing Director Ryan Katofsy told the Houston Chronicle. “Costs are down, performance is improved. There’s more awareness of the qualities (batteries) provide.” The paper also smartly notes that excess power generated by wind especially is what has states like Texas eying additional battery storage in order to reap the most benefits out of renewables, both financially and in terms of grid reliability.
Campaign Action
Texas and California will see the most battery storage facility projects in the coming years, accounting for more than 75% of the storage planned to come online by 2025, according to the EIA. Around two dozen projects are planned in total. Plenty of other states have a vested interesting in not only overhauling their power grids but making them more robust through renewables. Wisconsin recently unanimously approved the state’s Public Service purchase of the Darien Solar Energy Center, which will bring enough power for 75,000 homes as well as battery storage for up to 75 megawatts of power.
NV Energy, the state of Nevada’s largest utility, has plans for a battery storage project that could bring a two-hour energy storage system to its grid. The system is designed to take the pressure off the utility during peak load hours and could help substantially in the summer, when power use is particularly high. With so many gains for renewables expected in the next few years as well, it only makes sense that utility-scale battery storage would also experience a boom.
Some of this has to do with impending investment tax credits from the Inflation Reduction Act. A suite of incentives are being offered for both renewables and battery storage, including such credits, outright direct-pay options for tax-exempt groups, and manufacturing credits. The Biden administration is serious about the renewables transition and willing to put its money where its mouth is, making a huge difference as it eyes its goal of reaching net-zero by no later than 2050.