US grid-scale storage installations double in Q1 on "staggering" decline in system prices
New report by Wood Mackenzie and American Clean Power Association cites declines in lithium prices and Chinese oversupply
The US installed a record 993MW/2.95GWh of grid-scale energy storage capacity in the first quarter, more than double a year earlier, aided by a 39% decline in system prices, according to latest data from Wood Mackenzie and American Clean Power Association (ACP).
Residential installations rose 48% to 252.4MW and those for community, commercial, and industrial (CCI) declined 41% to 33MW. Total first quarter additions were up 84% versus a year earlier.
The grid-scale segment, which dominates sector activity followed by residential and CCI, was led by fast-growing Nevada, 38% of total capacity, and Texas (35%).
Nevada’s entire capacity gain was attributable to Primergy’s $1.2bn solar-paired Gemini energy storage project in the Mojave Desert. Texas installed 12 storage projects. Clean energy investment is booming in both Nevada and Texas which rank third and fourth in economic growth among all 50 states.
OEMs and integrators were also dealt a win with recently released domestic content guidance that changed the reporting structure to qualify for a 10% tax credit adder, allowing for developers to declare their eligibility without use of manufacturing costs from the OEM directly.
Looking ahead, the grid-scale segment in 2024 will see a 45% year-on-year additions increase to 11.1GW/31.6GWh, bringing total cumulative volume in the next five years to 62.6GW/219GWh, according to Woodmac.
“Growth flattens in 2025 and 2026 as project capacity is pushed into later years of the forecast largely due to early-stage development challenges such as permitting and siting, and interconnection queue timelines,” notes the report.
The grid-scale pipeline totaled 426GW on 31 March.
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