Industrial & Medical Technology

U.S. Increases Energy Storage Deployments by 126% in Q2

08 September 2016

In the second quarter of 2016, the United States deployed 41.2 megawatts of energy storage, an increase of 126% over the first quarter of the year, according to the latest U.S. Energy Storage Monitor, a quarterly report from GTM Research.

While this was just up 1% year-over-year, the new deployments were diversified over market segments and geographic territories that made up for the lack in annual growth. While growth has come mostly in either California or the PJM Interconnection (the electricity grid that runs in the upper Northeast), in the second quarter energy storage growth came from the MISO territory in the Midwest states.

Energy storage installations are expected to grow to 281 megawatts by the end of the year. Source: GTM Research Energy storage installations are expected to grow to 281 megawatts by the end of the year. Source: GTM Research The PJM Territory and California together only accounted for 35% of the megawatt capacity and 47% of the megawatt-hour capacity deployed in the quarter—the lowest in more than three years. However GTM Research says by year-end, California will regain its position as the U.S.’s top storage market as new energy storage installations are expected to be in place later this year in Southern California.

“This quarter marked several storage firsts, such as the first grid-scale project in MISO and a large solar-plus-storage at a municipal utility in Ohio,” says Ravi Manghani, GTM Research’s director of energy storage. “Additionally the industry received a big boost from the White House, with recently announced public and private commitments that will result in 1.3 gigawatts of new storage deployments and, more importantly, spur a billion dollars in storage investments.”

Of the growth that happened in the quarter, behind-the-meter deployments—residential and commercial energy storage systems—grew 66% year-over-year as a result of improving economic conditions and new adoptions in state markets. For the year, energy storage is estimated to grow to 281 megawatts of energy storage, up from 226 megawatts of storage installations in 2015. Growth is expected to continue for the next five years, and it will reach 2,081 megawatts of storage by 2021, GTM Research says.

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