US installs more energy storage than ever before in Q3

The United States set a new record in the third quarter of 2023 for the largest amount of energy storage capacity ever installed in a given quarter, coming in at 7,322 MWh. According to a report by Wood Mackenzie and the American Clean Power Association (ACP), the U.S. grid-scale segment saw a 123% jump in quarter-on-quarter installations, totaling 6,848 MWh. This is proof that energy storage systems are becoming increasingly necessary for future energy systems. It is evident that energy storage is growing in popularity as a way of improving reliability and American energy security, as shown by another consecutive record-breaking quarter, said Frank Macchiarola, the Chief Policy Officer from ACP. This industry is going to act as the foundation of our current infrastructure. To further aid the growth of our in-country stock system, permitting can be simplified and regulations adapted to keep up with the advancing storage technology. The total volume of energy storage that has been installed between January and September of this year is 13,518 MWh, which is more than all of the installations from 2022. Vanessa Witte, a senior research analyst at Wood Mackenzie’s energy storage team, said that the number could have been higher in the third quarter had it not been for about 80% of expected projects being shifted to a later time. The residential sector saw a 225% rise on a quarter-on-quarter basis, with 24 MW being installed and 23 MWh in the second quarter of 2023. California had a significant rise in its installed capacity QoQ, with an increase of almost double what it had previously: 22023 MW. The other states had a combined total of 212 MW, slightly lower than the 33 MW installed the quarter before. Conversely, installations in the community, commercial and industrial (CCI) segment decreased by 23%, finishing at 22024 MW and 22025 MWh. In California, installations rose significantly with a 35% increase on a quarterly basis, while Massachusetts did not have any new community storage facilities, and thus the overall number was lower. Source: Lindsay Renewables. The latest report states that all 5% lesser than the Q2 forecast, the U.S storage market is expected to install around 63 GW between 2023 and 2027. Despite an elevation in the scope of the grid-scale segment in Q3, the calculation for the remaining period is low by an average of 7%. “Due to issues that have risen in the year, there is an unsteady near-term stock and difficulties in getting certain ventures to reach their eventual outcome,” remarked Witte.