Energy storage deployments in 2023 are on track to double those of the year prior. By the end of the decade, total capacity is set to expand tenfold, surpassing 400GWh. All battery-based energy storage systems degrade over time, leading to a loss of capacity.
Two 25MW/100MWh projects were deployed in the last few years (by Nippon Koei Energy Europe and Nala Renewables respectively) and January saw Dutch devel-oper Giga Storage claim it would start construction on a 600MW/2,400MWh project there, one of the biggest in Europe, in 2024.
Some 880MW/1,809MWh of energy storage projects were granted contracts in the PERTE tender in December 2023. The bulk will come online in 2025, reflected in LCP’s data, which shows 1.7GW/4.1GWh coming online that year.
In the third quarter of 2023, and despite significant delays in the market, the US storage market added a record-setting 2,354 MW and 7,322 MWh.
According to recent analysis from the Fraunhofer Institute for Solar Energy (Fraunhofer ISE), the installed base of battery storage close to doubled last year, going from 4.4GW/6.5GWh of cumulative installs by the end of 2022 to 7.6GW/11.2GWh by the end of 2023. Pumped hydro connected to the grid, totalling 6GW, remained unchanged.
Around 15 states have adopted some form of energy storage policy, including procurement targets, regulatory adaption, demonstration programs, financial incentives, and/or consumer protections. Several states have also required that utility resource plans include energy storage.