Will US energy storage industry invest $100 billion in batteries?

Courtesy of Salt River Project The U.S. energy storage industry will invest $100 billion over the next five years to build and buy batteries made in the United States, the American Clean Power Association and company representatives said Tuesday.

Why is energy storage important?

Energy storage at the substation or customer site enhances power quality and provides backup power in areas where lines and transformers cannot handle additional capacity, especially as more intermittent renewable resources come online. Other Utilities increased spending by $8.6 billion (30%) on other electricity systems costs from 2003 to 2023.

Which companies are expanding or building new battery facilities?

ACP said companies that are already expanding or building new battery facilities include Tesla in Nevada, Fluence in Tennessee, LG Energy Solution in Michigan and Form Energy in West Virginia. "We need clean power, we need more power and we need the ability to store power," West Virginia Senator Shelley Moore Capito said at the event.

How can a large-scale battery storage system improve power supply?

Renewable energy, especially solar, has become one of the cheapest and fastest ways to add more power supply. Large-scale battery storage helps to overcome the challenges from the intermittent nature of energy derived from the sun and wind, allowing power companies to match supply with times of peak demand.

How much did energy storage cost in 2022?

Although energy storage remains a relatively small portion of the total budget for distribution infrastructure, spending increased from $97 million in 2022 to $723 million in 2023.

What is the growth rate of industrial energy storage?

The majority of the growth is due to forklifts (8% CAGR). UPS and data centers show moderate growth (4% CAGR) and telecom backup battery demand shows the lowest growth level (2% CAGR) through 2030. Figure 8. Projected global industrial energy storage deployments by application