The contribution of batteries to the U.S. power grid is consistently increasing, and now exceeds 20 GW of electric power capacity. In the first seven months of 2024 alone, operators added 5 GW of capacity nationwide to the electric power grid.
Lithium-ion batteries are primarily installed for such application, according to the U.S. Energy Information Administration (EIA). Electricity utilities increasingly report using batteries to move electricity from periods of low prices to periods of high prices, a strategy known as arbitrage. Utilities report that arbitrage is the primary use case for 10,487 MW of battery capacity, making it the most reported primary use. These large-scale battery systems can also serve to improve grid reliability with services that support the transmission of electricity, such as ancillary services that encompass frequency regulation.
Source: EIA
This energy storage technology also allows 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.
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EIA projects U.S. battery capacity to more than triple with the installation of 35,953 MW by the end of 2028.
