Released January 25, 2021 | SUGAR LAND
en
Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--The North American market for battery energy storage systems (BESS) has increased dramatically in recent years, and today it has more than 450 projects--valued at about $48.6 billion--under development, according to Industrial Info's Global Marketing Intelligence Platform.
The industry's growth has been extraordinary. In 2019, nine BESS projects were completed in North America. Those facilities had a total investment value (TIV) of about $158.1 million. Last year, Industrial Info tracked the completion of 36 North American BESS projects valued at $1.6 billion. California, Hawaii and Texas were the states with the largest dollar value of BESS projects completed in 2020.
Click on the image at right to see a chart showing the North American states with the greatest dollar value of BESS project completions in 2020.
The pace of development has accelerated rapidly. This year, according to Industrial Info's project database, 124 BESS projects are scheduled to begin construction across North America. The value of these projects is slightly more than $11 billion. Industrial Info believes about 80 of these projects, valued at roughly $5.8 billion, have a medium or high probability of beginning construction this year according to their current schedule.
Texas, California and New York are the states with the largest dollar value of BESS projects with a 2021 kickoff date.
Click on the image at right to see a chart showing the North American states with the greatest dollar value of 2021 BESS project activity.
The pace of development accelerates even more in 2022, when 138 projects valued at $14 billion are scheduled to break ground. California, Texas and New York are the three states with the highest dollar value of BESS projects scheduled to begin construction in 2022, according to Industrial Info's project database.
Industrial Info believes about 72 of these projects, valued at roughly $7.42 billion, have a medium or high probability of beginning construction next year, as per their schedule.
Click on the image at right to see a chart showing the North American states with the greatest dollar value of 2022 BESS project activity.
Industrial Info is tracking a total of 456 BESS projects across North America that are actively being developed. The TIV of these projects is about $48.6 billion. Those numbers include projects scheduled to begin construction in 2021 or 2022. Residential BESS projects are not included in these numbers.
Click on the image at right to see the states with the highest dollar value of BESS projects under development.
The sharp growth of utility-scale BESS derives from various factors, including regulatory support and mandates, technological improvements, cost reductions and rising interest by electric utilities. BESS can be used in a variety of ways, including storing renewable energy, peak shaving, load shifting, emergency backup and various other services.
Developers are building microgrids for businesses and institutions that include BESS. Sometimes that's because those businesses require a high level of power quality, with no surges or sags. Other times it's because a facility houses first responders or military forces and thus cannot be out of power for any sustained period of time. Extreme weather, such as hurricanes and tornadoes, as well as wildfires and other catastrophes that affect the power grid also helped convince companies and institutions to investigate islanding themselves from the power grid using microgrids and BESS.
"We don't expect all of these BESS projects to begin construction or begin commercial operations according to their current schedules," commented Britt Burt, Industrial Info's vice president of global research for the Electric Power Industry. "We understand some BESS projects, like other industrial projects, have experienced some slowdowns and, in some cases, are being threatened with cancellations due to delays stemming from the COVID-19 pandemic."
"Nonetheless, this is a striking rate of growth," he continued. "Even if half these projects never get built, we're still looking at an industry whose installed capacity looks to be doubling or tripling for the next several years."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
The industry's growth has been extraordinary. In 2019, nine BESS projects were completed in North America. Those facilities had a total investment value (TIV) of about $158.1 million. Last year, Industrial Info tracked the completion of 36 North American BESS projects valued at $1.6 billion. California, Hawaii and Texas were the states with the largest dollar value of BESS projects completed in 2020.
The pace of development has accelerated rapidly. This year, according to Industrial Info's project database, 124 BESS projects are scheduled to begin construction across North America. The value of these projects is slightly more than $11 billion. Industrial Info believes about 80 of these projects, valued at roughly $5.8 billion, have a medium or high probability of beginning construction this year according to their current schedule.
Texas, California and New York are the states with the largest dollar value of BESS projects with a 2021 kickoff date.
The pace of development accelerates even more in 2022, when 138 projects valued at $14 billion are scheduled to break ground. California, Texas and New York are the three states with the highest dollar value of BESS projects scheduled to begin construction in 2022, according to Industrial Info's project database.
Industrial Info believes about 72 of these projects, valued at roughly $7.42 billion, have a medium or high probability of beginning construction next year, as per their schedule.
Industrial Info is tracking a total of 456 BESS projects across North America that are actively being developed. The TIV of these projects is about $48.6 billion. Those numbers include projects scheduled to begin construction in 2021 or 2022. Residential BESS projects are not included in these numbers.
The sharp growth of utility-scale BESS derives from various factors, including regulatory support and mandates, technological improvements, cost reductions and rising interest by electric utilities. BESS can be used in a variety of ways, including storing renewable energy, peak shaving, load shifting, emergency backup and various other services.
Developers are building microgrids for businesses and institutions that include BESS. Sometimes that's because those businesses require a high level of power quality, with no surges or sags. Other times it's because a facility houses first responders or military forces and thus cannot be out of power for any sustained period of time. Extreme weather, such as hurricanes and tornadoes, as well as wildfires and other catastrophes that affect the power grid also helped convince companies and institutions to investigate islanding themselves from the power grid using microgrids and BESS.
"We don't expect all of these BESS projects to begin construction or begin commercial operations according to their current schedules," commented Britt Burt, Industrial Info's vice president of global research for the Electric Power Industry. "We understand some BESS projects, like other industrial projects, have experienced some slowdowns and, in some cases, are being threatened with cancellations due to delays stemming from the COVID-19 pandemic."
"Nonetheless, this is a striking rate of growth," he continued. "Even if half these projects never get built, we're still looking at an industry whose installed capacity looks to be doubling or tripling for the next several years."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
