The global energy storage market is continuing to grow exponentially. In 2017, energy storage reached a total installation size of 6 gigawatts, a substantial increase from the 0.34 gigawatts installed in 2012 and 2013. This past year, energy storage grabbed headlines, by providing backup power to major projects like Aliso Canyon in southern California, through partnerships between major solar developers and storage companies, and in the deployment of exciting new technologies, like the world’s largest battery, installed by Tesla in Australia.
Despite market fluctuations in other industries, energy storage has maintained steady growth in deployments throughout 2017. According to GTM Research, the U.S. energy storage market in Q3 2017 has grown 46 percent year over year, from 28.6 megawatts in Q3 2016 to 41.8 megawatts in the third quarter in 2017. From 2017 to 2022, the U.S. storage market will grow to nearly nine times its current size with behind-the-meter deployments making up half the annual market by 2021.
The growing market potential for energy storage has also resulted in an increase in investments in the sector: battery energy storage companies raised a record-breaking $890 million in funding in 2017, according to Mercom Capital.
California continues to work toward the ambitious target of 1,325 MW of storage for investor-owned electric utilities by 2020, which originally set by California Public Utilities Commission in 2013. With 2020 quickly approaching, every megawatt is crucial. Pacific Gas and Electricity Co. (PG&E) recently announced its commitment to expanding their energy storage portfolio and have six energy stroage contracts, totaling up to 165 MW, submitted to the California Public Utilities Commission (CPUC) currently pending review. In addition, electric service providers and community choice aggregators must procure energy storage resources equal to 1% of their peak load by 2020.
The energy storage market will expand as the electrification of transportation continues. Recently, China announced it was researching the impact of a ban on internal combustion engines. Norway, France and the U.K. have pledged to only sell electric vehicles, and California may soon follow suit, driving the U.S.’s clean transportation future.
The Chinese/Indian Battery Market and Its Implications for North America
Tuesday, July 10, 2018, 10:30am - 11:45am
The Outlook for Energy Storage in California
Tuesday, July 10, 2018, 12:45pm - 2:15pm