Centrica’s 60MWh battery project near Scottish coast will help integrate offshore wind

Centrica’s 49MW Roosecote battery storage project, commissioned in 2018 in Cumbria, northeast England. Image: Centrica.

Centrica Business Solutions has acquired a 30MW fully consented battery energy storage project in Scotland, UK, which will help manage North Sea offshore wind farms.

The two-hour duration (60MWh) battery storage plant in Dyce, near Aberdeen, was developed by Cragside Energy Limited and backed by Omni Partners LLP. 

It obtained planning consent in November 2021, and currently has a go-live date of mid-2024. Construction is expected to last eight months, and be aligned with its grid connection date. 

As the offshore wind sector continues to grow in the UK – with research from trade association RenewableUK this week showing there is now a pipeline of 86GW of offshore wind projects, more than eight times the current operational capacity – there is an increasing need to manage network constraints. 

National Grid paid £244 million (US$321.7 million) to wind farm operators to curtail generation in 2021, for example. Battery storage could help avoid such a cost, storing energy when the network is constrained and releasing it when generation is less abundant or demand higher.

To read the full version of this story visit Current±.

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Australia surpassed 1GWh of annual battery storage deployments during 2021

Rendering of the Wandoan BESS 100MW/150MWh project in Queensland, for which financial close was achieved in December 2020. Image: Vena Energy.

Australia logged its first year of annual battery storage deployment exceeding 1GWh in 2021, including 756MWh of non-residential, mostly large-scale front-of-the-meter projects. 

Solar and storage market intelligence group Sunwiz has just released its report into the Australian battery energy storage system (BESS) market, looking back on a record-breaking year for the industry. 

A total of 1,089MWh estimated installations were made in all segments, with 30,246 home battery systems totalling 333MWh accounting for the remainder of the total. 

Sunwiz has forecast that similar numbers are likely to be recorded for 2022, predicting 33,000 home energy storage sales (363MWh at an average size of 11kWh per system) and around 750MWh for grid-scale storage.

That would total around 1,113MWh, while the commercial and industrial (C&I) is poised for fourfold growth but will still remain an extremely small wedge of the entire market, Sunwiz said. 

From 2015 to 2021, a total of 2,657MWh of battery storage has been installed in the country, including residential (1,464MWh) and non-residential (1,192MWh), Sunwiz found. 

By comparison with another leading front-of-the-meter market, according to another research firm, Wood Mackenzie Power & Renewables, the US energy storage industry’s 2021 deployments stood at 3GW/9.2GWh of grid-scale battery storage and 3.5GW/10.5GWh across all scales. 

Germany, Europe’s leader in residential storage sales, installed 739MW/1,268MWh of home energy storage systems in 2021, according a report co-authored by RWTH Aachen University. Germany’s large-scale energy storage segment, by contrast, only deployed 36MW/32MWh of new installations for last year. 

Victoria is Australia’s leading state

State-by-state, Victoria accounted for 32% of the entire market, with New South Wales (NSW) on 24% and South Australia on 21%. Other states accounted for much fewer percentages, with West Australia on 9%, Queensland 8%, the Northern Territory 2% tied with the Australian Capital Territory (ACT) and Tasmania 1%. 

That said, for Victoria it was a record-breaking year, while NSW has already recorded strong installation volumes and its tally of 7,377 installations was in line with figures in recent years. South Australia fell behind previous years’ rankings due to the downturn in subsidies in the state and its second place ranking in 2020 was overtaken by NSW. 

Victoria hosts a 48% share of the commercial and grid-scale operating capacity today, with South Australia the next biggest at 24%, Queensland on 14% and NSW on 9%. Last year, the Victorian Big Battery came online, which at 300MW/450MWh made a big contribution to the state’s total. 

Tesla, which supplied the BESS for the Victorian Big Battery, also supplied equipment to four other large projects commissioned in 2021, including the Wallgrove Grid Battery in South Australia (50MW/75MWh) and Bulgana Green Energy Hub in Victoria (20MW/34MWh). 

A smaller project of note for its use of vanadium flow battery energy storage at megawatt-scale is the Yadlamalka Energy Project. A government-supported demonstration project, Anglo-American flow battery company Invinity Energy Systems will provide a 2MW/8MWh vanadium redox flow battery (VRFB) to be paired with 6MWdc of onsite solar PV at a site in South Australia.

There is around 1,000MWh of grid-scale energy storage currently under construction, but the development pipeline of projects is a massive 57GWh, according to the report. 

A map of proposed commercial and grid-scale projects showed that nearly all in Australia’s east, with projects spreading inland from Sydney in NSW, concentrated in the south in Victoria and clustered towards the coast in South Australia. 

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Fluence’s next Australia megabattery project to demonstrate advanced grid-forming technology

Fluence’s GridStack BESS solutions will be used for the project. Image: Fluence.

A 50MW/50MWh grid-scale battery energy storage system (BESS) will be used to demonstrate the ability of smart inverter technologies to support the stability of the power grid in Australia. 

Broken Hill in New South Wales is a site with a strong history in the mining industry. More recently, it’s become host to solar and wind power generation.

However, the area has only a weak connection to the grid network. Renewable energy generated there is having to be curtailed when supply outweighs local demand and the variable nature of wind and solar is causing headaches for the local network’s managers. 

The large-scale lithium-ion BESS will be equipped with grid-forming inverters which will improve system strength and allow for the greater integration of renewables. As highlighted in this recent Guest Blog for the site by Blair Reynolds at inverter manufacturer SMA, inverter-based technologies can play an important role previously played by thermal generation — creating synchronous inertia.

Major Australian utility company AGL is developing and will own the project, part of an 850MW BESS rollout it currently has underway. 

Global energy storage system integrator and services company Fluence will provide the BESS, having signed a framework agreement to work with AGL in early 2021. Australian infrastructure services group Valmec will partner with Fluence on the project. 

The AU$41 million (US$30.88 million) project will be supported with financing from the national Australian Renewable Energy Agency (ARENA), which this morning announced it will supply AU$14.84 million in funding.

ARENA, which is a government organisation, sees large-scale energy storage as a “key focus area” and the technology is a priority technology in the Australian government Technology Roadmap, ARENA CEO Darren Miller said. 

“Big batteries are already becoming critical to our electricity system, but we know with grid forming inverters they can provide system strength services traditionally provided by thermal generation,” Miller said.

“We are particularly interested in seeing how AGL’s Broken Hill battery will utilise and demonstrate advanced inverter technology in a weaker section of the electricity grid.”

Darren Miller added that the project can highlight the potential of large-scale battery storage to provide system stability more cost-effectively as more renewable energy is added to the grid.

Broken Hill BESS is scheduled to be commissioned next year. 

Also in development in the area is an advanced compressed air energy storage (A-CAES) project of 200MW/1,600MWh by Hydrostor, which has been selected by electricity network operator Transgrid to provide much larger-scale bulk storage at longer duration to directly ease curtailment issues and manage peak demand.

The announcement today comes a few days after AGL received local government approval for another major project in its BESS push, a 500MW/2,000MWh project planned for construction at a retiring coal power plant site, also in NSW.

How it works

“As Australia moves forward with its energy transition, we know that firming technologies like batteries play an important role in energy storage and supporting the energy supply,” AGL’s chief operating officer Markus Brokhof said.

“Broken Hill’s unique edge-of-grid environment provides an ideal location for this advanced inverter technology to demonstrate how it can facilitate further penetration of renewable energy generation and add to the stability of the wider electricity network.”

Thermal generation equipment, like coal and gas, are synchronous generation which provides stability to the electricity system through their continuous rotating mass while in operation. 

While variable renewable energy sources are basically the opposite of that, inverters can instead play a corrective role and operate as the local network’s voltage source. 

Australia got its first-ever BESS project that plays this role in 2018, in the Energy Storage for Commercial Renewable Integration (ESCRI) project at Dalrymple, South Australia, a similarly ‘edge-of-grid’ location. A 30MW/8MWh BESS supplied by Hitachi Energy (formerly Hitachi ABB Power Grids) serves as a provider of inertia at that demonstration project. 

The Broken Hill system will be unique in that it will always stay in so-called grid-forming mode, inherently resisting changes in voltage and frequency on the grid and providing synthetic inertia through its Virtual Synchronous Machine (VSM) mode, Fluence said today. 

The BESS will also perform more common applications such as participating in frequency control ancillary services (FCAS) markets and playing into other wholesale market opportunities in Australia’s National Electricity Market (NEM).

It could also assist the Australian Energy Market Operator (AEMO) by combining its capabilities with other inverter-based renewable energy assets nearby in the West Murray region of NSW. 

“The Broken Hill battery project’s full power dispatches instantaneously to quickly respond to large changes in voltage and/or frequency, delivering the fastest response of all battery- based energy storage systems currently available in the market,” Fluence general manager for Australia Aaron McCann said.

“This fast response will enable the system to operate stably and damp voltage oscillations after a fault in weak grid areas the West Murray region, which will enhance the system strength on the grid.”

The grid-forming inverters themselves will be supplied by EPC Power, a California-headquartered manufacturer which was recently picked as power electronics supplier to EVLO Energy Storage, the energy storage system integrator subsidiary of Canadian utility HydroQuebec. 

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ACP’s Energy Transition Framework Outlines Benefits for Workers, Communities

The American Clean Power Association (ACP), on behalf of its over 700 member companies, has released its Energy Transition for All initiative – an industry-wide framework to ensure that workers, communities and those historically left behind stand to benefit from the rapid growth of the clean power sector in the United States. The initiative was launched with the release of a report containing an outline of multi-year industry objectives to realize those goals.

“The United States is in an unprecedented transition toward a clean energy future,” says Heather Zichal, ACP’s CEO. “If undertaken thoughtfully, this transition will be an unparalleled opportunity to create a better future for everyone, offering greater access to clean and affordable energy along with expanding economic growth and opportunities for investment and innovation. With the launch of this initiative, ACP member companies across the wind, solar, transmission and energy storage technologies are committing to this vision for an equitable Energy Transition for All.”

Today, renewable energy represents roughly 13% of electricity generation in the U.S. By 2030, the clean energy industry could account for as much as 50% of the electricity produced in the U.S. – creating 500,000 jobs and attracting $700 billion in new investment.

The Energy Transition for All initiative is designed to expand opportunities for workers in disadvantaged communities and to help spur local economic development by promoting diversity and inclusion across the clean power sector.

The Energy Transition for All report identifies a series of responsibilities and associated actions to be taken by the clean power sector over the coming years across the following three pillars. The first pillar expands opportunity for workers, especially those from transitioning and historically disadvantaged communities. The second creates value for communities through supply chains, targeted investments and local economic development. The third pillar focuses on leading in diversity and inclusion, striving towards a workforce and leadership teams that are representative of the communities we operate in.

ACP and its members will pursue programs across these three pillars as part of this multi-year initiative. Additionally, member companies and ACP will partner with local and national organizations and policymakers providing expertise, implementation support, perspectives and networks that can help them support an energy transition for all.

The report also highlights the broad range of existing programs offered by individual companies within the clean power industry that provide economic opportunity to transitioning workers and communities and increase the participation of diverse and underrepresented communities in the industry. ACP sees the initiative as an opportunity and an obligation to scale best practices and drive a cross-sector approach in order to achieve even greater impact in the coming years.

“There is no single solution to ensure a successful energy transition,” Zichal adds. “It will take coordination from policymakers, community leaders and industry to ensure that the transition is equitable and that everyone shares in the economic growth and opportunity. As an industry, we are committed to playing our part in creating a better future for everyone and an energy transition for all.”

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US installed 1.6GW/4.7GWh of energy storage in Q4 2021 but supply chain challenges are ongoing, says WoodMac

It was a recording break Q4 for energy storage installations in the US. Image: Kenueone.

A total of 1,613MW/4,727MWh of energy storage was installed in the US in the last quarter of 2021 according to Wood Mackenzie, which says annual residential storage installations will hit 2GW by 2026.

The power MW installed in Q4 was more than the first three quarters of the year combined which saw 1.5GW installed. Research group Wood Mackenzie Power & Renewables said Q4 saw impressive grid-scale deployment figures in certain Southern States as well as the established frontrunners of California and Texas.

But Q4 should have been even more of an outlier with 2GW of grid-scale capacity expected to come online during the quarter pushed back to 2022 and 2023 in light of supply chain challenges. We could see as much as 1.7GW installed in the current quarter.

Overall, Wood Mackenzie said 3GW/9.2GWh of grid-scale storage came online out of a total 3.5GW/10.5GWh across all segments in the US in 2021. That is 140% year-on-year growth measured in GW and a tripling of deployments measured by GWh. But the 3.5GW is lower than the 4.2GW figure from BloombergNEF’s competing report released earlier this month, covered by Energy-storage.news.

Meanwhile, separate figures covering all clean energy recently released by American Clean Power Association, which also commissioned WoodMac’s recent report, said the utility-scale segment saw 2.6GW of deployment last year. WoodMac’s figures cover all market segments.

It says the residential storage segment had its strongest quarter to date with 123 MW installed in Q4 2021 which was driven by sales of solar-plus-storage systems, of which half was in California. Puerto Rico installed 14.3GW while Texas saw 10.5 MW of deployments in the residential segment.

The report adds that system price gains over the last few years have been nearly wiped out by higher costs for raw materials and transportation. Battery module pricing has spiked the most of all system components while BOS (balance of system) has remained flat.

For the coming five years, WoodMac expects similar growth this year and in 2023 to that seen in 2021, but expects three roughly flat years for deployments in 2024-2026. In total over 2021-2026, the research firm expects 63.4GW/202.5GWh of storage to have been deployed. And by the end of the period, annual deployments of residential storage will hit 2GW/5.4GWh.

It says that projects are still being built at record-setting pace despite costs and supply chain issues causing delays and that its methodology includes additional risk weighting to account for supply chain issues

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AGP, Hartree Expand Global Solar Joint Ventures with U.S. Launch of AMPYR Energy

Stephen Semlitz

AGP Sustainable Real Assets Pte Ltd. (AGP) and Hartree Partners LP have launched AMPYR Energy USA, the second joint venture between the two companies in just over a year.

AMPYR Energy USA, which will be headquartered in New York, is targeting to build a 5 GW utility-scale solar PV platform across multiple U.S. markets. The company will continue to leverage AGP’s experience in developing large-scale renewable power projects globally, and Hartree’s power trading analytics and zero-carbon solutions.

“With the federal and state goals for accelerating the energy transition, the U.S. will be one of the fastest growing solar markets in the world and a core strategic priority in realizing AMPYR’s ambition of becoming one of the largest independent renewables developer and operator globally,” says Saurabh Beniwal, partner at AGP and board chair for AMPYR USA.

Since its inception in February 2021, Hartree and AGP’s European solar venture, AMPYR Solar Europe (ASE), is making progress towards its goal of rolling out 5 GW of large-scale solar s in Europe. ASE also recently closed a €400 million facility to support this plan.

“We are excited to take another step forward with AGP into the US market,” states Stephen Semlitz, managing director of Hartree. “This new venture allows us to further demonstrate our decades of experience in finding investment solutions, consulting, and generating sustainable and commercially viable strategies for energy renewal and regeneration.”

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Alternative technologies ‘may struggle to compete with lithium-ion’ as duration grows

Vanadium flow battery energy storage units at Pivot Power’s Energy Superhub site in Oxford, England. Image: Invinity Energy Systems.

Long-duration energy storage (LDES) technologies may have a difficult time competing with lithium-ion over the next decade as the latter’s cost-competitiveness at longer durations increases, possibly even to 24 hours, according to Haresh Kamath, Electric Power Research Institute (EPRI).

Just exactly when long-duration energy storage, including flow batteries like Invinity Energy System’s and ESS Inc’s, will take off is a hot topic. But with lithium-ion battery energy storage systems (BESS) being launched widely at four, six and now even eight hour durations, is there a danger for emerging long duration technologies that developers will just stick with the industry standard?

“They can and then they probably will. As the cost of lithium ion comes down I expect that number (of hours duration) to move out. By the end of the decade, I think that we will probably have cost effective lithium at maybe even 24 hours [duration] systems if they’re needed,” Kamath said.

“My feeling is that many of the other proposed energy storage systems have yet to meet their price targets and they certainly have not met their targets in terms of maturity. And so they’re going to have a tough go competing with lithium ion in the next decade.”

“The only way to really for them to establish themselves is if they are able to offer substantially longer times than lithium-ion. It can’t be eight hours; they’ve got to be competitive at the 20 hour or 50 hour point where, once you get up to those numbers, it’s very difficult for lithium-ion to compete because of the way it scales.”

Because the unit cost of lithium-ion BESS increases proportionally as a systems’ duration increases, larger systems are currently very expensive.

Longer duration battery technologies like vanadium flow and iron flow have a more marginal increase in cost as you increase the duration, and so are more cost competitive as you get to larger system sizes.

Long duration storage companies would agree with much of what Kamath says. Invinity CEO Larry Zulch told Energy-storage.news that talking about long duration ‘hours’ would soon be redundant – soon long duration would mean days, weeks or months of discharge.

Those groups would say it is on the cusp, but why it hasn’t taken off already relates to barriers around upfront cost, regulation, policy and market revenue mechanisms. And the most mature market of California clearly sees a role for technologies capable of discharging for days with US$380 million to support up to 20 long duration storage projects in the state included in its recent budget.

And take off it needs to, according to the Long Duration Energy Storage Council formed last year. It claims that LDES has the potential to deploy 1.5-2.5 TW power capacity globally by 2040: 8-15 times the total storage capacity deployed today. Though it concedes that LDES costs must decrease by 60% for it to be cost optimal.

Kamath appears sceptical of these figures, questioning the broader value proposition of long duration energy storage. “Long-duration storage in general, to me, is a little bit of a puzzle because nobody has, in my view, established that it’s needed and nobody has established that they can satisfy it with any of the technologies that are presently being proposed,” he said.

“Those (long-duration) companies are following the intuition that if you have tons of renewables then why would you not want long duration storage. But it’s not clear to me that the value proposition is there, and it’s not clear to me that the that these technologies that are being proposed will be able to serve that value proposition, even if it is there.”

He adds that EPRI is is doing a lot of research into the area and to demonstrate that the value proposition is there. And he’s no lithium-ion fanatic either, sounding a note of caution on just how popular the chemistry has become for stationary energy storage.

“Lithium-ion batteries are becoming so popular and are being used in so many different ways. Watching that number of deployed systems burdgeon to the degree that it has, it is very interesting to see how that all goes.”

“Especially since we don’t have as much data as we’d like from those systems as to how well they’re working. We have installed a huge number of systems, but it’s not clear how often they’re dispatched, or whether they are being used to the extent that they could be. That data is still not out there and it’s something that would be very helpful to understand if we’re making the right investments or not.”

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India takes ‘step towards dream,’ incentivising 50GWh of domestic battery manufacturing

Four winners have been selected to receive financial incentives from India’s government, to support plans to build 50GWh annual manufacturing capacity of advanced batteries for EVs and ESS. 

The Ministry of Heavy Industries officially announced the winning bidders that competed for funds through the Production Linked Incentive (PLI) for Advanced Chemistry Cell (ACC) Battery Manufacturing today. 

PLI schemes exist for other technologies like solar cells, electronics and electric vehicles, with the government describing battery manufacturing as one of this century’s “largest economic opportunities”. 

A pot of INR181 billion (US$2.42 billion) has been made available for gigafactories with at least 5GWh of annual production capacity per site. The incentives will be disbursed over five years, and the factories must be operational within two years. 

The winners:

ApplicantCapacity quotedCapacity awardedRajesh Exports Limited5GWh5GWhHyundai Global Motors20GWh20GWhOla Electric Mobility20GWh20GWhReliance New Energy Solar 20GWh5GWh

India Energy Storage Alliance (IESA) president Dr Rahul Walawalkar told Energy-Storage.news that with the awards and the promise of a quick start to advanced battery manufacturing in the country, India has taken a step towards realising the alliance’s “dream of becoming a global hub for R&D and manufacturing of advanced energy storage technologies”.

While the awardees are mostly in the automotive space, Reliance New Energy Solar, a subsidiary of Indian industrial heavyweight Reliance Industries is very much in the renewable energy sector. In the last few months, Reliance New Energy has bought up UK startup Faradion, which works on sodium-ion battery tech and Lithium Werks, which makes lithium iron phosphate (LFP) batteries. 

Reliance had bid for support for 20GWh of manufacturing capacity and was awarded PLI for 5GWh through the scheme, with a further 15GWh on the waitlist. It was also a winning bidder under the PLI scheme for solar module and cell manufacturing.

A further five companies, Mahindra & Mahindra, Exide Industries, Larsen & Toubro, Amara Raja Batteries and India Power Corporation were also waitlisted for capacity plans ranging from 5GWh to 15GWh.

The competitive solicitation process had been oversubscribed, with 130GWh of plans submitted. 

‘Next couple of years are critical’

Dr Rahul Walawalkar from IESA said it was great to see not just the winners of the scheme announced, but that at least five other groups plan to go ahead with gigafactory investments in India within the next two to three years. 

“The next couple years are critical for India to focus on technology partnerships, skill development and capacity building to support the gigafactories as well as complete supply chain,” the IESA president said. 

IESA was among stakeholders that had input into the programme’s design and Walawalkar said that the organisation is now working with government think tank NITI Aayog, the Ministry of Power and Ministry of Heavy Industries to ensure demand creation policies and initiatives are accelerated in the next couple of years.

Companies that have shown the first-mover initiative in the space should be able to benefit from that leadership, he said.

A further 20 or so more bids are expected to come in for another PLI scheme on Niche ACC technologies when it launches in September this year, which would add an additional 5GWh of annual manufacturing capacity in the country. 

India’s Central Electricity Authority has modelled a need for 27GW/108GWh of battery storage by 2030 to meet national goals of adding 500GW of renewable energy capacity from solar and wind, while battery storage could be an export opportunity as well. 

Dr Walawalkar said IESA’s roadmap for the manufacturing sector targets India having at least 25GWh of production capacity by 2025, more than 70GWh by 2027 and over 100GWh by 2030.

By 2027, IESA anticipates the split of India’s battery manufacturing capacity will be about 60:40 between EVs and ESS.

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Bert Chen Joins RCG’s Canadian Team to Grow Renewable Energy Capabilities

Bert Chen

The Renewables Consulting (RCG), an ERM Group company, is ramping up its renewable energy services and projects across Canada. The company has appointed Bert Chen as senior associate.

Before RCG, Chen was manager in business development at Brookfield Renewable Energy where he was responsible for due diligence and project management of greenfield and mid-stage development projects in North America. With a background in renewable energy and finance, Chen brings a commercial and financial perspective to RCG’s technical advisory offering.

“We’re excited that Bert has joined our Vancouver team,” says Francis Charbonneau, RCG’s associate director in Vancouver. He brings strong expertise in financial analysis, regulatory affairs, technical expertise, legal and commercial negotiations as well as project management within the North American renewable energy sector. He is a tremendous asset that will bring added value to our clients.”

RCG offers technical and management consulting services for mainstream and emerging renewable energy technologies. It works with the public sector, private equity and financial services firms, utilities and project developers, equipment manufacturers, and engineering and construction companies for wind, solar and emerging technologies, including wave and tidal and energy-storage projects.

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Energy Storage Hits Record for New Installations in Q4 2021

The U.S. energy storage market set a new record in the fourth quarter of 2021, with new system installations totaling 4,727 MWh. According to Wood Mackenzie, a Verisk business, and the American Clean Power Association’s (ACP) latest U.S. Energy Storage Monitor report, Q4 2021 saw more capacity installed than in the first three quarters combined, despite project delays.

Annual deployments of grid-scale storage nearly tripled year-over-year to 3 GW/9.2 GWh. Despite a record year, the grid-scale market didn’t meet expectations in 2021, with supply chain challenges delaying more than 2 GW of capacity into 2022 and 2023. Wood Mackenzie forecasts that supply chain pressures and delays within interconnection queue processing will persist through 2024.

“Year 2021 was yet another record for the U.S. energy storage market, with annual installations of multiple gigawatts for the first time,” says Jason Burwen, ACP’s vice president for energy storage. “Even in the face of continued macro-economic headwinds, interconnection delays and lack of proactive federal policy, increasing demand for resilient clean energy and volatility in the price of fuel-based generation will drive energy storage deployment forward. Despite supply tightness leading to some project delays, the grid-scale market is still on track for exponential growth.”

System component price gains experienced over recent years have nearly been wiped out by higher costs for raw materials and transportation. Specifically, battery module pricing saw the largest increase of all system components due to the increased cost of raw materials.

Residential storage had its strongest quarter to date with 123 MW installed, beating the previous quarterly record of 110 MW in the first quarter of 2021. Increasingly effective solar-plus-storage sales in markets outside of California helped establish the new quarterly benchmark and resulted in a national annual total of 436 MW.

By 2026, annual installations in the residential segment are expected to hit 2 GW/5.4 GWh, with frontrunners in California, Puerto Rico, Texas and Florida leading that market segment.

“Puerto Rico’s position in the residential U.S. solar-plus-storage market comes as no surprise, and demonstrates how outages can drive battery adoption, with thousands of new residential installs emerging each quarter and competition increasing between local installers,” states Chloe Holden, an analyst with Wood Mackenzie’s energy storage team.

“Outages in Puerto Rico are also driving customers to recognize the added value of resilience that solar-plus-storage systems offer, despite premium pricing and lack of incentive programs,” adds Holden. “This is also driving solar-plus-storage market growth in Florida, the Carolinas and parts of the Midwest.”

The report found that the California storage market remains resilient as policy and market developments, such as NEM 3.0, shakes up the solar market. And by 2027, California will remain the largest residential storage market, with three-and-a-half times more storage installed annually in 2027 compared to 2021.

The non-residential storage segment delivered 131 MWh in the fourth quarter resulting in 162 MW/350 MWh of total annual deployments in 2021. Segment demand was driven by increased storage attachment rates within the community solar markets of New York and Massachusetts.

Read the full report here.

Image: Photo by Mariana Proença on Unsplash

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