HOME > News

Energy Storage Revolution: EIA Forecasts Record-breaking 14.53GW in New Installations for 2024

published: 2024-02-02 15:36

EnergyTrend has gathered insights from the latest EIA statistics, revealing that energy storage installations with capacities exceeding 1MW reached 1.23GW in December. This marks a substantial 332% year-on-year increase and a notable 183% month-on-month rise. However, it's noteworthy that the actual installations in December fell short of the projected 2.35GW from the previous month.

Additionally, Customs statistics indicate that the export of inverters from China to the United States has experienced notable dynamics.

Taking a retrospective view of the U.S. market, the initial half of 2023 witnessed new energy storage installations totaling 2.5GW out of 7.7GW. Challenges like supply chain disruptions and delayed grid connections for large-scale energy storage impacted photovoltaic (PV) installations in the first half, resulting in figures below expectations. Despite this, as issues eased in the third quarter, large-scale energy storage installations demonstrated stable month-on-month growth. Consequently, the annual installations for 2023 maintained steady growth.

According to EIA data, newly added installations of energy storage systems for utility scale (more than 1MW) reached 6.22GW, reflecting a noteworthy 50.6% year-on-year increase.

Looking ahead to 2024: 2024 will witness a surge in projects, an improved supply chain scenario, and more detailed and certain IRA subsidies, signaling a promising future. 

The United States stands as the primary global market for large-sized energy storage, boasting ample project reserves. According to the U.S. Energy Information Administration (EIA), the newly added installations of energy storage systems for utility scale (more than 1MW) throughout 2024 may reach 14.53GW (slightly adjusted from last month's forecast of 14.59GW), marking a remarkable year-on-year growth of 133.6%. It's worth noting that this planned capacity data is continuously updated.

The overall cost on the supply side, encompassing elements like battery cells and capital, is on a downward trend. Furthermore, the IRA policy is evolving with more detailed specifications and a gradual implementation plan. Concurrently, the United States' backlog of grid connections has eased, supported by conducive policies. Consequently, the United States is poised to witness a substantial increase in large-sized energy storage system installations, paving the way for a flourishing future for the industry.

Furthermore, as relevant policy processes undergo simplification and considering the existing project reserves, TrendForce anticipates that U.S. energy storage installations will likely hit 13.7GW / 43.4GWh in 2024, marking a substantial 23% and 25% increase. Although the growth rate of installed capacity slowed down to 100% in 2023 compared to the previous year, specific analysis reveals that large-sized energy storage continues to dominate the energy storage landscape in the United States.

Projections for Energy Storage Installations in the United States in 2024

Players in the Large-sized Energy Storage Sector

Key players in the large-sized energy storage sector are primarily associated with lithium-ion battery energy storage. This technology is expected to contribute significantly to the increased installations of large-sized energy storage. The industrial chain for lithium-ion battery energy storage encompasses energy storage equipment in the upstream segment, system integration in the midstream segment, and power plants in the downstream segment.

On one hand, the industry witnesses continuous iterative updates in energy storage technology, and on the other, installation costs are consistently decreasing. This dual dynamic, driven by both internal advancements and external factors, propels rapid development within the energy storage sector. Consequently, enterprises strategically engaging in overseas markets, possessing cutting-edge technologies, and actively participating in the U.S. large-sized energy storage supply chain are positioned to reap greater profits.

announcements add announcements     mail print