Energy Storage Deployments Break Q3 Record
New Storage Capacity Crucial for Economic Growth & Rising Energy Demand
The American Clean Power Association’s (ACP) latest market report highlights the rapid rise of energy storage as a vital resource for America's electric grid. This growth not only enhances reliability and affordability but also drives economic expansion, meeting increasing energy demands and supporting industries like manufacturing and data centers.
The U.S. now has 25X the amount of energy storage capacity it did at the start of the decade.
U.S. energy storage capacity continued to reach new milestones in the third quarter, surpassing the 25 GW mark to end the quarter at 25,135 MW/69,247 MWh. The country had just over 1 GW installed at the start of the decade and has rapidly ramped up installations in the four and a half years since.
With more than 3.5 GW of capacity added to the grid, battery storage experienced its strongest Q3 on record in 2024 and second strongest quarter overall. Battery storage installations in Q3 2024 were 17% higher than the previous quarter and 58% higher compared to Q3 of 2023.
2024 Cumulative Energy Storage Capacity Breaks Annual Record in Just Three Quarters
The cumulative energy capacity (MWh) of storage resources added in the first three quarters of 2024 eclipsed the total energy capacity added in the entirety of 2023. So far 22,148 MWh of battery capacity has been added to the grid through three quarters in 2024, while 21,991 MWh had been added through 2023. The average duration of installed battery storage projects is also increasing.
Energy storage installations comprised 35% of the quarter’s additions of all U.S. grid-scale clean power, with more than 3.5 GW of new capacity completed. Energy storage accounted for 85% of California’s clean power additions during the quarter, continuing its trend toward connecting more storage than solar. Other states, including Arizona and Texas, added a substantial amount of new energy storage capacity in Q3.
Standalone Storage Projects Lead as Offtake Agreements Grow Year-over-Year
Developers commissioned a total of 44 battery storage projects in Q3 2024, including 36 standalone projects and 8 paired with wind or solar capacity.
Around 64% of year-to-date storage capacity additions have consisted of standalone projects, although this dynamic varies by state. Texas, which has seen a sharp increase in storage installations in recent years, primarily brings online standalone storage projects, while developers in Desert Southwest states like Arizona and Nevada favor hybrid projects.
During Q3 2024, developers announced that 735 MW of battery storage power purchase agreements (PPAs) were executed. The capacity of storage PPAs executed in Q3 2024 was 162% higher than in Q3 2023. The battery storage share of PPAs announced rose from 7% in Q3 2023 to 12% this quarter.
Energy Storage Pipeline Continues to Grow Rapidly
The energy storage pipeline increased by 5.8 GW in Q3, accounting for 80% of the clean power pipeline’s net growth during the quarter. New additions drove the overall storage pipeline up to 39.2 GW at the end of Q3 — 17% higher than it ended Q2 and an acceleration from its 14% average quarterly growth rate going back to 2022.
This is a key indicator of both the industry’s growing market strength and the recognition that energy storage resources are an essential resource for electric grids across the country. The U.S. energy storage industry’s expanding pipeline is a key driver of the pending boom in American grid battery manufacturing.
For more information, download the full report HERE.
