The US is projected to take over South Korea as the world’s largest market for grid-connected energy storage this year.
That’s according to new research, which suggests solar combined with battery storage as well as peaking capacity requirements are driving increased procurement.
Deployments of grid-connected energy storage in the US this year is expected to total 712MW, nearly double the amount added in 2018, when capacity stood at 376MW.
The country will surpass South Korea, which is expected to see the market drop below 600MW “or even significantly lower”, says IHS Markit.
It adds a record for grid-connected battery storage was set in 2018 as global installations nearly doubled, largely driven by growth in South Korea in the first half of the year, while growth in the US was slower, with deployments increasing by only around 22%.
The research expects more than 2GW of energy storage to be paired with utility-scale solar power systems over the next three years, with the majority of the projects projected to be deployed in markets across Western US, including Arizona, California and Hawaii.
In terms of installed solar capacity, 10GW of utility-scale projects are forecast to be paired with energy storage systems from 2019 to 2023, accounting for 16% of large installations.
IHS Markit suggests several major factors will fuel growth in the US, including federal policies driving regional grid operators to incorporate additional market mechanisms that will encourage more participation of energy storage resources, the investment tax credit (ITC) currently available for solar and state-level energy storage mandates and incentives helping to kickstart development.
Source: Energy Live News