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U.S. Battery Installations Soared in 2022, Reshaping Power Grids

The U.S. installed more battery storage last year than ever before, with California and Texas leading the way The United States is in a battery boom, adding nearly as much capacity on the power grid in 2022 as it did in all previous years combined. The surge is reshaping America’s regional electric grids. In California, for example, analysts credit a wave of new battery installations with sparing the state from electric blackouts late last summer, when a searing heat wave sent power demand soaring. The United States installed 4 gigawatts of battery capacity in 2022, nearly matching the 4.7 GW installed in all previous years combined, according to U.S. Energy Information Administration figures. California and Texas accounted for 90 percent of U.S. battery installations, bringing online 2.4 GW and 1.3 GW, respectively, in 2022. The battery explosion in America’s two most populous states is largely due to the growing strength of solar. California and Texas are the first- and second-largest solar markets in the United States, respectively, by some distance. The high penetration of solar in each state contributes to large swings in electricity prices, which fall during the day when solar is producing and surge in the evening when demand rises and solar production falls off. Batteries are well-placed to profit from the price surge during the evening hours. Lithium-ion batteries, which account for the vast majority of utility-scale energy storage installations, can charge quickly using surplus solar generation during the daytime hours and dispatch power over a four-hour interval in the evening. “You’re really chasing arbitrage,” said Dan Finn-Foley, an analyst who tracks the storage industry at PA Consulting. “Storage can capture a lot of value there.” The sheer scope of America’s energy storage boom is stunning, he said. In 2018, the United States installed a total of 189 megawatts of storage capacity. Last year, the largest single installed project was 350 MW, according to the American Clean Power Association, a trade group. The growth is not surprising, Finn-Foley said. The lithium-ion batteries used for grid purposes are the same batteries used in electric vehicles. As the EV market has grown, it has scaled up supply chains and driven down battery costs for grid-scale storage. Batteries used in the power sector make up a small part of the overall lithium-ion battery market. “It is safe to say that the stationary grid storage industry would not exist today without the EV industry,” Finn-Foley said.

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  • Munene Mugambi

    68 w

    Here's to renewable energy 👏🏽

    • We Don't Have Time

      68 w

      Dear Astor Perkins Thank you for getting your climate love to level 2! We have reached out to United States Senate and requested a response. I will keep you updated on any progress! /Adam We Don't Have Time

      • Gorffly mokua

        68 w

        Great! It is time for action, Less talking more action.

        • Tabitha Kimani

          68 w

          Such great news brings joy to the soul.

          • Waigwa Monica

            68 w

            Great progress

            • Sarah Chabane

              68 w

              Good to read!

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