The US energy storage sector added a record amount of new capacity in the fourth quarter, doubling the record set in the prior quarter, according to a new report.
The US deployed about 4,200MW/12,400MWh of new battery storage capacity during the last three months of 2023, according to the latest quarterly report from trade group the American Clean Power Association and consultant Wood Mackenzie. The total broke the previous record of about 2,100MW/7,300MWh set in the third quarter of 2023.
"Easing supply chain challenges and system price declines" contributed to the record growth, Wood Mackenzie senior analyst Vanessa Witte said.
Grid-scale installations made up the lion's share of new capacity with about 3,980MW in October-December — more than four times the capacity added a year earlier — with residential deployments coming in second at about 220MW. Deployments in the community, commercial, and industrial segment totaled just under 34MW.
In all of 2023, the US added more than 8,700MW of battery storage, a 90pc increase from 2022.
Most of the full-year additions came from grid-scale projects, which almost doubled from 2022 to 7,910MW. While Wood Mackenzie expects growth in this segment through 2028, including a 30pc rise in 2024. But the consultant predicts that the pace will slow in 2025 and 2026 due to "early-stage developmental challenges" from permitting, siting and interconnection queue timelines.
The US is on track to add 59,000MW over the next five years, down by about 6pc from the previous forecast.
The US is expected to add about 9,000MW of residential storage over the next five years.
