• 2 minutes U.S. Presidential Elections Status - Electoral Votes
  • 5 minutes “Cushing Oil Inventories Are Soaring Again” By Tsvetana Paraskova
  • 7 minutes United States LNG Exports Reach Third Place
  • 3 hours China sends warplanes thru Taiwan airspace. Joe's reponse . . . .
  • 16 mins Biden suspends oil and gas drilling on Federal Lands for 60 days for review.
  • 10 mins Joe Biden's Presidency
  • 17 hours The World Economic Forum & Davos - Setting the agenda on fossil fuels, global regulations, etc.
  • 23 hours Navalny Poisoning Weakens Russo German Relations
  • 9 hours Minerals, Mining and Industrial Ecology
  • 22 hours Here it is, the actual Complaint filed by Dominion Voting Machines against Sydney Powell
  • 1 day Will Empire be brazen about stealing OIL from Venezuela?
  • 12 mins Jim Rickards: Brace for a Great Escape from the Dollar and a Flood of Money into Gold and Bitcoin
  • 37 mins GENERAL NORMAN SCHWARZKOPF: The Third Tour
  • 2 hours Biden's Green Energy Policy
  • 2 hours 'Get A Loan,' Commerce Chief Tells Unpaid Federal Workers
  • 2 days So Is COVID a Media Hoax or Not?
Shell Buys UK’s Top EV Charging Network

Shell Buys UK’s Top EV Charging Network

Shell is buying ubitricity, the…

IHS Predicts A Record Year For Renewables In 2021

IHS Predicts A Record Year For Renewables In 2021

This year, renewable installations are…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

U.S. Energy Storage Capacity Set To Double This Year

U.S. grid-connected energy storage capacity this year is set for a twofold increase to 712 MW from 376 MW last year. What’s more, between 2019 and 2024, storage capacity will soar to almost 5 GW, of which 90 percent will be battery storage, IHS Markit said in a new report.

This will make the United States the country with the most energy storage capacity connected to the grid, ahead of the current global leader in this area, South Korea.

According to the market research company, there are several factors that will drive this development, and these include the falling costs of battery storage components and the solar investment tax credit introduced in 2006.

As for the falling costs, they are part of a larger trend in the renewable energy industry as developers of wind and solar installations continue to boost their efficiency and costs of materials decline despite the U.S.-China trade war many expected to have a devastating effect on solar in particular.

In fact, in some cases, solar and wind plus storage is cost-competitive with traditional peaker plants that use fossil fuels to provide backup power when needed. This week the U.S. News & World Report wrote about Southern California Edison’s decision to scrap its plans for a new 262-MW peaker plant in favor of a 195-MW battery array that will store energy produced by solar and wind farms.

Wood Mackenzie’s head of energy storage says battery storage facilities are increasingly becoming a better alternative to peaker plants.

"Gas peakers only operate a few hours in a year,” Ravi Manghani told the U.S. News & World Report. "We've seen four to six hours of energy storage is technically sufficient to replace most of these peaking assets. As battery costs continue to fall, battery storage systems have become economically more attractive alternatives." Related: Natural Gas Prices In The Permian Flip Negative Again

The solar investment tax credit, according to IHS analysts, will be the main driver behind a boom in utility-scale solar plus battery storage installations over the next four years. These, the research firm said, will come to account for 40 percent of all energy storage installations to be built in the United States between 2019 and 2023.

This year will be crucial for new deployments: the solar investment tax credit, which currently stands at 30 percent, will fall to 10 percent at the end of 2022. It’s worth noting that the investment tax credit will remain at 10 percent permanently, but only for utility-scale installations, which provides an additional impetus for new projects. This means solar-plus-storage developers have a major incentive to start building their facilities this year and they will take advantage of this incentive, according to the IHS analysts.

There is one additional factor in favor of more energy storage deployments, too: it can stabilize the performance of solar and wind power installations in extreme weather conditions that interfere with power generation, such as heavy snow or wind. While perhaps not as important as the other two that will motivate the major jump in deployments in the United States, it certainly will act as a supporting factor in this jump.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News