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Released September 23, 2024 | SUGAR LAND
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Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--Battery energy storage systems (BESS) remain one of the hottest sectors in the U.S. Electric Power industry, according to the U.S. Energy Information Administration (EIA) (Washington, D.C.). Data tracked by Industrial Info suggest BESS project development could get even hotter.
Earlier this month, the EIA said operators added 5 gigawatts (GW) of utility-scale BESS to the U.S. power grid through the first seven months of this year, bringing total deployments to 20.7 GW. By contrast, it noted that only 4 megawatts (MW) of utility-scale battery energy storage was added in the United States for all of 2010. Sharply rising deployments of utility-scale BESS is an illustration of the term, "hockey-stick growth."
Click on the image at right to see a graphic on cumulative deployments of utility-scale BESS in the U.S.
"Utility-scale battery energy storage systems have been growing quickly as a source of electric power capacity in the United States in recent years," the EIA said September 5. Those systems "provide electricity to the power grid and offer a range of services to support electric power grids. Among these services are balancing supply and demand, moving electricity from periods of low prices to periods of high prices (a strategy known as arbitrage), and allowing electricity from renewable sources, such as wind and solar, to be stored until needed instead of curtailing those sources at times when they produce more electricity than is consumed."
The agency did offer a forecast about full-year 2024 BESS additions.
But data tracked by Industrial Info offer a hint of full-year 2024 deployments and beyond. Industrial Info is tracking 612 BESS projects valued at about $205.6 billion that are scheduled to begin construction over the next two years, through September 2026. These projects have a high- or medium-probability of beginning construction according to their current timelines. Subscribers to Industrial Info's Global Market Intelligence Power Database can click here for a list of detailed project reports.
Many of these projects are attached to a renewable electric generation source, such as wind or solar, but some are stand-alone projects.
The states with the greatest dollar value of utility-scale BESS projects scheduled to begin construction over the next 24 months are Texas, Nevada, Arizona and California, according to Industrial Info's data.
Since the start of 2022, the states with the greatest dollar value of completed utility-scale BESS projects are California and Texas (both $6 billion), Nevada ($2 billion) and Arizona ($1 billion). Overall, Industrial Info's data show that 131 BESS projects valued at about $16.4 billion were completed in the U.S. between January 2022 and July 2024. Subscribers can click here for a list of detailed project reports.
Click on the image at right to see a graphic of the states with the greatest dollar-value of utility-scale BESS completed between January 2022 and July 2024.
As coal-fired power plants continue to close, and transmission project development continues to encounter years-long delays, some experts are suggesting storage projects could help keep the lights on.
"The development of energy storage technologies is a critical 'X factor' that we believe will play a huge role in determining whether the 'rush to renewables' continues," said Britt Burt, Industrial Info's senior vice president of research for the Electric Power Industry. "If costs continue to decline and the industry develops greater experience with BESS, we expect they will play a significant role in the development of electric power generation."
The most recent edition of the annual Lazard's Levelized Cost of Energy+ study, released earlier this summer, showed that utility-scale solar photovoltaic + storage had a levelized cost of between $60 and $210 per megawatt-hour (MWh). Onshore wind + storage had a levelized cost of between $45 and $133 per MWh. By contrast, a gas-fired peaking plant had a levelized cost of between $110 to $228 per MWh. Gas-fired combined-cycle generation had a levelized cost of between $45 and $108 per MWh, the study said.
Click on the image at right to see a Lazard graphic of the costs of renewable energy, renewables + storage and conventional generation.
A new study from the nonprofit group Clean Grid Alliance (St. Paul, Minnesota) and various solar organizations concluded that a major expansion of battery storage may be the most economical and environmentally beneficial way for Illinois to maintain grid reliability as it phases out fossil fuel generation and meets the projected demand of two dozen new data centers in the Land of Lincoln.
The study was undertaken as lawmakers in Springfield consider proposed legislation that would require the Illinois Power Agency to procure energy storage capacity for deployment by electric utilities Commonwealth Edison (Chicago, Illinois) and Ameren (St. Louis, Missouri), according to a report in Power Engineering. The study concluded that deploying 8,500 MW of energy storage resources in Illinois could improve the reliability of energy supply for the state's residents and businesses while saving Illinois customers as much as $3 billion in power bills.
"The outlook is not great for bringing on major amounts of new capacity to replace the retiring capacity," said Mark Pruitt, former head of the Illinois Power Agency and author of the study. His study suggests batteries will be a more realistic path forward than a massive buildout of new generation and transmission infrastructure.
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 over 200,000 current and future projects worth $17.8 Trillion (USD).
Earlier this month, the EIA said operators added 5 gigawatts (GW) of utility-scale BESS to the U.S. power grid through the first seven months of this year, bringing total deployments to 20.7 GW. By contrast, it noted that only 4 megawatts (MW) of utility-scale battery energy storage was added in the United States for all of 2010. Sharply rising deployments of utility-scale BESS is an illustration of the term, "hockey-stick growth."
"Utility-scale battery energy storage systems have been growing quickly as a source of electric power capacity in the United States in recent years," the EIA said September 5. Those systems "provide electricity to the power grid and offer a range of services to support electric power grids. Among these services are balancing supply and demand, moving electricity from periods of low prices to periods of high prices (a strategy known as arbitrage), and allowing electricity from renewable sources, such as wind and solar, to be stored until needed instead of curtailing those sources at times when they produce more electricity than is consumed."
The agency did offer a forecast about full-year 2024 BESS additions.
But data tracked by Industrial Info offer a hint of full-year 2024 deployments and beyond. Industrial Info is tracking 612 BESS projects valued at about $205.6 billion that are scheduled to begin construction over the next two years, through September 2026. These projects have a high- or medium-probability of beginning construction according to their current timelines. Subscribers to Industrial Info's Global Market Intelligence Power Database can click here for a list of detailed project reports.
Many of these projects are attached to a renewable electric generation source, such as wind or solar, but some are stand-alone projects.
The states with the greatest dollar value of utility-scale BESS projects scheduled to begin construction over the next 24 months are Texas, Nevada, Arizona and California, according to Industrial Info's data.
Since the start of 2022, the states with the greatest dollar value of completed utility-scale BESS projects are California and Texas (both $6 billion), Nevada ($2 billion) and Arizona ($1 billion). Overall, Industrial Info's data show that 131 BESS projects valued at about $16.4 billion were completed in the U.S. between January 2022 and July 2024. Subscribers can click here for a list of detailed project reports.
As coal-fired power plants continue to close, and transmission project development continues to encounter years-long delays, some experts are suggesting storage projects could help keep the lights on.
"The development of energy storage technologies is a critical 'X factor' that we believe will play a huge role in determining whether the 'rush to renewables' continues," said Britt Burt, Industrial Info's senior vice president of research for the Electric Power Industry. "If costs continue to decline and the industry develops greater experience with BESS, we expect they will play a significant role in the development of electric power generation."
The most recent edition of the annual Lazard's Levelized Cost of Energy+ study, released earlier this summer, showed that utility-scale solar photovoltaic + storage had a levelized cost of between $60 and $210 per megawatt-hour (MWh). Onshore wind + storage had a levelized cost of between $45 and $133 per MWh. By contrast, a gas-fired peaking plant had a levelized cost of between $110 to $228 per MWh. Gas-fired combined-cycle generation had a levelized cost of between $45 and $108 per MWh, the study said.
A new study from the nonprofit group Clean Grid Alliance (St. Paul, Minnesota) and various solar organizations concluded that a major expansion of battery storage may be the most economical and environmentally beneficial way for Illinois to maintain grid reliability as it phases out fossil fuel generation and meets the projected demand of two dozen new data centers in the Land of Lincoln.
The study was undertaken as lawmakers in Springfield consider proposed legislation that would require the Illinois Power Agency to procure energy storage capacity for deployment by electric utilities Commonwealth Edison (Chicago, Illinois) and Ameren (St. Louis, Missouri), according to a report in Power Engineering. The study concluded that deploying 8,500 MW of energy storage resources in Illinois could improve the reliability of energy supply for the state's residents and businesses while saving Illinois customers as much as $3 billion in power bills.
"The outlook is not great for bringing on major amounts of new capacity to replace the retiring capacity," said Mark Pruitt, former head of the Illinois Power Agency and author of the study. His study suggests batteries will be a more realistic path forward than a massive buildout of new generation and transmission infrastructure.
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 over 200,000 current and future projects worth $17.8 Trillion (USD).
