Record Growth in the U.S. Energy Storage Market in Q3 2024
The U.S. Energy Storage Market Achieves Record Growth in Q3 2024 The U.S. energy storage market experienced record-breaking growth in the third quarter of 2024. According to the latest U.S. Energy Storage Monitor report, prepared by Wood Mackenzie and the American Clean Power Association (ACP), total installed capacity across all segments reached 3.8 GW. This represents an impressive 80% increase compared to the same period in 2023.
Historic Results
The residential sector installed 346 MW of energy storage, marking a 63% increase from the previous period and setting a new quarterly record. As usual, the most significant growth was seen in California, Arizona, and North Carolina, which increased installations by 56%, 73%, and 100%, respectively.
The grid-scale segment saw even greater success. In Q3 2024, 3.4 GW and 9.1 GWh of new energy storage were deployed, representing an 84% increase in capacity and a 58% increase in storage volume compared to the same period last year. Notably, Texas tripled its installations compared to the second quarter, adding 1.7 GW. Meanwhile, California achieved nearly 6 GWh of new storage through investments in long-term solutions.
Experts point out that the surge in energy storage interest stems from the need to improve grid reliability, integrate renewable energy sources, and reduce energy costs.
Stability in the CCI Segment
While the residential and grid-scale segments set records, the community, commercial, and industrial (CCI) energy storage sector remained relatively stable. In the third quarter, 29 MW were installed, marking a 4% decline compared to the same period in 2023. Despite this, analysts believe the sector retains its crucial role in balancing local energy needs.
Outlook for Future Periods
The report also includes expert forecasts, which indicate that the U.S. energy storage market will continue its dynamic growth. Estimates suggest the grid-scale segment will double its installations by 2028, reaching a total capacity of 63.7 GW. The residential segment is expected to reach 10 GW of new installations during this period.
“The energy storage market addresses a real need for improving grid reliability and efficiency,” said John Hensley, Senior Vice President of Market and Policy Analysis at ACP. “With 64 GW of new storage planned for deployment over the next four years, we’re sending a clear message that energy storage is a cornerstone of the grid’s future.”
However, as Nina Rangel from Wood Mackenzie emphasizes, maintaining such a rapid pace of growth could pose challenges. Analysts predict that from 2025 to 2028, the average annual growth rate will be around 10%, mainly due to early-stage project development constraints.
Source: ess-news.com