Wood Mackenzie Power & Renewables and the Energy Storage Association (ESA) forecast that the US’ cumulative installations will almost triple this year and more than double in 2021 and predict that this year could be the first one in which the annual storage market will grow over USD 1 billion (EUR 882.7m), jumping to “just shy of” USD 2 billion. Nevertheless, spending in the sector could be affected by the regulatory uncertainty around wholesale market opportunities, as well as the general manufacturing and supply chain effects from the coronavirus outbreak, they warn. In 2019, investments totalled USD 712 million.
According to the statistics, 186.4 MW/364.2 MWh of new battery storage capacity was bought live in the last quarter of 2019. The analysts explain that demand is growing both in the utility and the residential solar sectors, with the home market gaining significant momentum that is unlikely to slow down. In the fourth quarter alone, homeowners installed 40.4 MW/90.3 MWh of battery storage, doubling the year-ago total and setting a third quarterly record in a row.
"This is no blip," said WoodMac storage analyst Brett Simon, adding that this growth will only intensify in 2020. This expansion will be mostly driven by California, where state funding is available for battery deployments in wildfire-threatened areas to support the resilience of the grid. General demand in this sector is also anticipated to improve as new players come and put downward pressure on prices.
