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The U.S. EIA believes the deployment of battery storage projects in the US will reach 10GW.agm battery factory

2022-02-18

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  The U.S. Energy Information Administration (EIA) newly released the "Electricity Monthly Update" survey report, the United States is expected to deploy battery energy storage systems in two years of installed capacity will reach 10GW, of which more than 60% will be co-located with solar power generation facilities deployed.

  The U.S. EIA expects the installed capacity of all energy sources in the U.S. to increase by 78 GW over the next two years. the majority of these will be large solar power facilities and storage projects, which are expected to grow by 62% to a total installed capacity of 49 GW. this figure does not include the increased installed capacity of small distributed residential solar power projects.

  

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  SES Power believes that because the lithium-ion batteries in energy storage applications are very broad, can not simply be limited to lithium-ion batteries only in the category of large energy storage systems for statistics, we must know one thing, in the past, lead-acid batteries are the first choice for small and medium-sized energy storage systems, and the use of these energy storage systems up to ten to 20 years, with lithium-ion batteries, especially iron phosphate, when replacing the original lead-acid batteries that have been used in energy storage systems, Lithium-ion batteries have become the first choice. SES Power has extensive experience and market information in this area, so the report's projections are considered too conservative.

  Of course, energy storage systems deployed in conjunction with solar power facilities are eligible for the federal investment tax credit, a very strong boost to the development of energy storage batteries. The credit will be phased out in 2024. The U.S. federal investment tax credit will be 26 percent in 2021-2022, dropping to 22 percent in 2023 and then to 10 percent after 2024.

  Utility-scale solar power facilities are expected to add 49% (38GW) of installed capacity. Since 2,020, the U.S. has added more installed capacity to solar power facilities (19GW) than wind power (11GW), and this trend is expected to continue. By 2022, 21GW of installed solar power facility capacity is expected to be deployed, compared to 16GW of installed wind power facility capacity.

  

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  Battery storage systems will also be deployed more, with the U.S. EIA estimating that 10GW of installed capacity will be added within two years. More than 60% of battery storage systems are expected to be deployed in conjunction with solar power facilities. The installed capacity of deployed battery storage systems will grow 300% from 2020 to 2021, with 1.5GW deployed in 2020 compared to an estimated 4.5GW this year. the U.S. Energy Information Administration (EIA) said that this growth is being driven by declining battery prices, cost advantages from solar power, and value-added factors such as grid flexibility and resilient services.

  Three U.S. states are expected to account for more than 52 percent of the 49GW of solar+storage projects to be deployed over the next two years. California will lead the way with 11GW, followed by Texas (10GW) and New York State (4GW).


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