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Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--Deployment of battery energy storage systems (BESS) in the U.S. jumped sharply last year, and deployments are expected to rise more than 10-fold over the next six years, according to a recent report from the U.S. Energy Storage Association (ESA) (Washington, D.C.) and consultant Wood Mackenzie (Edinburgh, U.K.).
BESS deployments in the U.S. totaled about 523 megawatts (MW) last year, most of which were for utility-scale installations, also known as "front of the meter," according to U.S. Energy Storage Monitor: 2019 Year in Review, recently released by ESA and Wood Mackenzie. Domestic deployments are projected to soar over the next six years, to an estimated 7,317 MW. Roughly 5,000 MW of those deployments are expected to be utility-scale (greater than 1 MW), the report added.
Click on the image at right to see a chart showing projected BESS deployments in the U.S. through 2025.
Industrial Info is tracking about 104 North American BESS projects scheduled to begin construction between January 2020 and December 2022. Deployments in the U.S. account for all but two of those 104 projects. Mexico and Canada each have one BESS project scheduled to kick off construction during that time. The total investment value (TIV) of those 104 projects is approximately $11.7 billion.
Six months ago, Industrial Info was tracking 88 BESS projects under development across North America with a TIV of about $9.5 billion. For more on that, see September 19, 2019, article - Battery Energy Storage Systems are Hot, and That Could be a Problem.
According to Industrial Info's Global Market Intelligence platform, the states with the most BESS projects under development are California (25 projects), New York (19 projects), Texas (13 projects) and Nevada (seven projects). Several U.S. states, including Connecticut, Virginia, Alaska and Arkansas, have one project each scheduled to begin construction before the end of 2022. In addition, Ontario and Baja California each have one project scheduled to begin turning dirt by yearend 2022.
Click on the image at right to see a chart of the states with the largest dollar-value of BESS projects scheduled to begin construction between January 2020 and December 2022.
Florida Power & Light Company (Juno Beach, Florida), a unit of NextEra Energy Incorporated (NYSE:NEE) (Juno Beach) and Hawaiian Electric (Honolulu, Hawaii), a unit of Hawaiian Electric Industries Incorporated (NYSE:HE) (Honolulu), are some of the utilities that have scheduled construction starts for BESS projects. Merchant power developers also are active in BESS, including NextEra Energy Resources (Juno Beach), a unit of NextEra Energy Incorporated; Vistra Energy Corporation (NYSE:VST) (Irving, Texas); LS Power Development LLC (New York, New York); Invenergy (Chicago, Illinois); Terra-Gen LLC (New York, New York); and EDF Renewables (Paris, France).
If anything, signs are that the BESS market could accelerate even further in the next few years, following California's decision late last year to require load-serving entities in the state to procure 3,300 MW of new, in-state, non-emitting generation by the summer of 2023. State utility regulators expressed particular interest in pairing renewable generation with BESS projects. For more on that, see March 13, 2020, article - To Keep the Lights on, California Orders 3,300 MW of New Non-Emitting Generation.
"As utilities and developers continue to gain experience building and operating BESS, particularly those using lithium-ion batteries, I expect we'll see costs continue to come down and deployments continue to rise," said Britt Burt, IIR's vice president of research for the global power industry. "There are some concerns around lithium-ion BESS, as shown in last year's explosion of a facility in Phoenix, Arizona. But because about 60% of states have a renewable portfolio standard (RPS), I expect BESS will be an important part of utilities' resource planning."
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.
BESS deployments in the U.S. totaled about 523 megawatts (MW) last year, most of which were for utility-scale installations, also known as "front of the meter," according to U.S. Energy Storage Monitor: 2019 Year in Review, recently released by ESA and Wood Mackenzie. Domestic deployments are projected to soar over the next six years, to an estimated 7,317 MW. Roughly 5,000 MW of those deployments are expected to be utility-scale (greater than 1 MW), the report added.
Industrial Info is tracking about 104 North American BESS projects scheduled to begin construction between January 2020 and December 2022. Deployments in the U.S. account for all but two of those 104 projects. Mexico and Canada each have one BESS project scheduled to kick off construction during that time. The total investment value (TIV) of those 104 projects is approximately $11.7 billion.
Six months ago, Industrial Info was tracking 88 BESS projects under development across North America with a TIV of about $9.5 billion. For more on that, see September 19, 2019, article - Battery Energy Storage Systems are Hot, and That Could be a Problem.
According to Industrial Info's Global Market Intelligence platform, the states with the most BESS projects under development are California (25 projects), New York (19 projects), Texas (13 projects) and Nevada (seven projects). Several U.S. states, including Connecticut, Virginia, Alaska and Arkansas, have one project each scheduled to begin construction before the end of 2022. In addition, Ontario and Baja California each have one project scheduled to begin turning dirt by yearend 2022.
Florida Power & Light Company (Juno Beach, Florida), a unit of NextEra Energy Incorporated (NYSE:NEE) (Juno Beach) and Hawaiian Electric (Honolulu, Hawaii), a unit of Hawaiian Electric Industries Incorporated (NYSE:HE) (Honolulu), are some of the utilities that have scheduled construction starts for BESS projects. Merchant power developers also are active in BESS, including NextEra Energy Resources (Juno Beach), a unit of NextEra Energy Incorporated; Vistra Energy Corporation (NYSE:VST) (Irving, Texas); LS Power Development LLC (New York, New York); Invenergy (Chicago, Illinois); Terra-Gen LLC (New York, New York); and EDF Renewables (Paris, France).
If anything, signs are that the BESS market could accelerate even further in the next few years, following California's decision late last year to require load-serving entities in the state to procure 3,300 MW of new, in-state, non-emitting generation by the summer of 2023. State utility regulators expressed particular interest in pairing renewable generation with BESS projects. For more on that, see March 13, 2020, article - To Keep the Lights on, California Orders 3,300 MW of New Non-Emitting Generation.
"As utilities and developers continue to gain experience building and operating BESS, particularly those using lithium-ion batteries, I expect we'll see costs continue to come down and deployments continue to rise," said Britt Burt, IIR's vice president of research for the global power industry. "There are some concerns around lithium-ion BESS, as shown in last year's explosion of a facility in Phoenix, Arizona. But because about 60% of states have a renewable portfolio standard (RPS), I expect BESS will be an important part of utilities' resource planning."
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.
