The U.S. energy storage industry grew 243% last year, and is on track to reach 1.7 gigawatts and a value of US$2.5 billion by 2020, GTM Research and the Energy Storage Association reported this week.
Of the 221 megawatts the industry installed in 2015, 112 MW went into service in the last three months of the year.
“We can look back at 2015 as the year when energy storage really took off,” said report author Ravi Manghani, senior energy storage analyst at GTM Research. “While most of the growth was limited to a single wholesale market,” he added, “we expect growing interest for storage in several markets.”
“Energy storage is changing the paradigm on how we generate, distribute, and use energy. With exponential growth predicted over the next couple of years, energy storage solutions will deliver smarter, more dynamic energy services, address peak demand challenges, and enable the expanded use of renewable generation like wind and solar,” said Energy Storage Association Executive Director Matt Roberts.
Greentech points to utilities as the “bedrock of the U.S. energy storage market,” accounting for 85% of new capacity in 2015. “Most of these deployments were in the PJM market, where more than 160 megawatts of energy storage systems went online in 2015.” PJM is the regional transmission organization that serves a part of the country roughly bounded by Illinois, Michigan, Tennessee, and Washington, DC.
The behind-the-meter consumer market was smaller, but grew 405% last year.