Current status of energy storage cabinets

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FAQs 6

What is the future of energy storage?

Renewable penetration and state policies supporting energy storage growth Grid-scale storage continues to dominate the US market, with ERCOT and CAISO making up nearly half of all grid-scale installations over the next five years.

Why did energy storage surge in Q1 2025?

That makes Q1 2025 the biggest first quarter for energy storage in US history. The surge was led by utility-scale projects, which accounted for over 1.5 GW of the new capacity, a 57% jump compared to Q1 2024. Surging energy demand is putting the electric grid under strain,” said John Hensley, SVP of markets and policy analysis at ACP.

Will energy storage grow in 2024?

Allison Weis, Global Head of Energy Storage at Wood Mackenzie Another record-breaking year is expected for energy storage in the United States (US), with Wood Mackenzie forecasting 45% growth in 2024 after 100% growth from 2022 to 2023.

Is energy storage at a crossroads?

The Q1 2025 results demonstrate the demand for energy storage in the US to serve a grid with both growing renewables and growing load,” said Allison Weis, global head of energy storage at Wood Mackenzie. “However, the industry stands at a crossroads, with potential policy changes threatening to disrupt this momentum.”

How much storage capacity will be installed in 2025?

In the near term, the report expects 15 GW/49 GWh of new storage capacity to be installed across all segments in 2025, with utility-scale installations projected to grow 22% year-over-year. However, the utility-scale segment is at risk for a potential 29% contraction in 2026 due to policy uncertainty.

Can energy storage meet the needs of an evolving grid?

Overall, there is an immense opportunity for energy storage to meet the needs of an evolving grid, and it is well-positioned to do so with the existing tax credits and its declining cost curve.