U.S. BESS Market to See More than $4 Billion in 1Q Kickoffs

Researched by Industrial Info Resources (Sugar Land, Texas)--The demand for battery energy-storage systems (BESS) across the U.S. could increase more than sixfold by 2030, according to a report from the Solar Energy Industries Association (SEIA), from 18 to 119 gigawatt-hours (GWh). The SEIA warns that the domestic manufacturing of BESS components threatens to lag project development, which could drive prices for materials even higher and stall some projects currently in their planning phases. Industrial Info is tracking more than $4 billion worth of active and planned BESS projects across the U.S. that are set to begin construction before the end of March, more than half of which is attributed to grassroot projects.

Click on the image at right for a graph detailing BESS projects across the U.S. that are set to kick off in the first quarter, by project type.

With its long and lofty list of climate goals, California leads the U.S. in BESS additions by a country mile. The state had more than 6.6 gigawatts (GW) of BESS capacity online in mid-2023, according to the U.S. Energy Information Administration (EIA), which marked a 757% increase over just four years. The buildout is set to continue with a major municipal project: a $112 million BESS unit at the Grayson Power Station in Glendale, which is trying to transition to 100% clean energy by 2045. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project and Plant databases can learn more from a detailed project report and plant profile.

Other BESS additions at existing facilities across California include Vesper Energy's (Irving, Texas) 50-megawatt (MW), $42 million unit at its Deer Creek Solar Plant in Terra Bella, and Atlantica Yield plc's (NASDAQ:AY) (Irving, Texas) 45-MW, $40 million unit at its Navy Coso I Power Station in Little Lake. Subscribers can read detailed reports on the Deer Creek and Navy Coso I projects; for more information on California's BESS ambitions, see October 27, 2023, article - California Reaches More than 6.6 GW of Installed BESS Capacity.

Texas is second only to California as the largest battery-storage market in the U.S., with about 9 GW installed at the end of 2022, according to the EIA. But some analysts are warning that Texas may be headed for a "battery bubble." In an interview on Renewable Energy World's "Factor This!" podcast, Cody Hill of REV Renewables said the Lone Star State has seen remarkably "low barriers to entry, and it's easy to get in there to build lots of stuff--and so many people raised so much money to go build so much stuff in the last few years. It's a very tough market."

The podcast cited a report from Modo Energy, which noted about 70% of last year's operational storage capacity in the service area for the Electric Reliability Council of Texas (ERCOT) was reserved for ancillary services, which is capacity set aside to support daily grid management needs. "Early next year, the analysts expect the capacity of batteries reserved for ancillary services to exceed the capacity awarded to storage," the podcast said.

Nonetheless, Apex Clean Energy Incorporated (Charlottesville, Virginia) is preparing for a $62 million BESS addition to its Angelo Solar Plant in San Angelo, Texas. The 130-MW unit will complement the 195-MW, $200 million solar plant, which began construction in early 2023; both components are expected to finish construction toward the end of 2024. Subscribers can read detailed project reports on the BESS unit and solar plant.

But the outlook for BESS projects would not be so promising if it were limited to the many heavy-load areas across California and Texas. Duke Energy Corporation (NYSE:DUK) (Charlotte, North Carolina) is readying four BESS additions to its Franklin Solar Plant in Rogerson, Idaho, each of which has a capacity of 32 MW. The Franklin Solar Plant, which is expected to have a 100-MW generating capacity, is just west of Duke's 120-MW Jackpot Solar Plant, which began operations about one year ago. Subscribers can read detailed reports on the Franklin Solar Plant and its BESS I, BESS II, BESS III and BESS IV projects.

The Jackpot Solar Plant, which provides energy to Idaho Power through a 20-year power purchase agreement, was the first utility-scale renewable-energy project in Idaho. Idaho Power aims to provide 100% clean energy by 2045.

Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.

Subscribers can click here for a full list of reports for active and planned BESS projects across the U.S. that are set to begin construction before the end of March.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).