U.S. battery storage capacity will increase significantly by 2025
The increase in-scale battery storage capacity in the United States is a significant development that is set to reshape the country's electric generating portfolio. According to the latest Preliminary Monthly Electric Generator Inventory, developers and power plant owners have ambitious plans to reach 30.0 gigawatts (GW) of battery storage capacity by the end of 2025.
Prior to 2020, battery storage capacity in the United States was negligible. However, the rapid growth in electricity storage capacity over the past few years has been remarkable. As of October 2022, there were already 7.8 GW of utility-scale battery storage operating in the country, with an additional 1.4 GW expected to be added by the end of this year alone. Looking ahead, developers and power plant operators anticipate adding another 20.8 GW of battery storage capacity from 2023 to 2025.
This growth in battery storage capacity is even outpacing the early expansion of utility-scale solar capacity in the United States. While solar capacity began expanding in 2010, growing from less than .0 GW in 2010 to 13.7 GW in 2015, battery storage is expected to soar from 1.5 GW in 2020 to 30.0 GW in 2025. This rapid expansion will undoubtedly revolutionize the country's electric generating portfolio.
One of the key benefits of battery storage is its ability to add stability to variable energy sources such as wind and solar. Since both wind and solar are intermittent resources, they can only generate electricity when the wind is blowing or during periods of sunshine. However, batteries solve this intermittency problem by storing excess energy produced by wind or solar generators for use at a later time, providing a steady supply of power.
Interestingly, more than three-quarters of the planned 20.8 GW of utility-scale battery storage capacity from 2022 to 2025 will be located in Texas (7.9 GW) and California (7.6 GW). This is due to the large amount of existing and planned solar and wind capacity in these states, which creates a growing demand for battery storage. California currently has the highest utility-scale solar capacity in the country at 16.8 GW, with an additional 7.7 GW expected to be added between 2023 and 2025. Meanwhile, Texas boasts a total of 10.5 GW of utility-scale solar capacity, with plans to install an additional 20.4 GW from 2023 to 2025. Additionally, Texas has the highest wind capacity in the nation, with 37.2 GW already in operation and another 5.3 GW set to be added over the next three years.
As battery capacity becomes more readily available, we are witnessing a trend of increasingly larger battery storage projects. In the past, the largest battery storage project in the United States was only 40 MW. However, the installation of the 250 MW Gateway Energy Storage System in California in 2020 marked the beginning of large-scale battery storage projects. Currently, the largest operating battery storage project in the country is the 409 MW Manatee Energy Storage in Florida. Looking ahead, developers have scheduled over 23 large-scale battery projects, ranging from 250 MW to 650 MW, to be deployed by 2025.Overall, the rapid expansion of utility-scale battery storage capacity in the United States signifies a transformative shift in the country's electric generating portfolio. With batteries providing stability to variable energy sources and the increasing demand for storage in states with high solar and wind capacity, the future looks promising for the advancement of clean and reliable energy systems.
