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25 Jun 2024 | 19:03 UTC
By Kassia Micek
Highlights
Capacity to reach 35,953 GW by the end of 2028
CAISO, ERCOT projected to account for 70% in US
US battery storage capacity is expected to triple by the end of 2028 as electric utilities report using batteries for arbitrage and grid stability, the Energy Information Administration said June 25.
At the end of 2023, US electricity utilities reported operating 575 batteries with a collective capacity of 15.814 GW, which is expected to grow to 35.953 GW by the end of 2028, according to plans reported to the EIA by utilities.
"Utilities now report that arbitrage is the primary use case for 10,487 MW of battery capacity, making it the most reported primary use," the EIA said. "In arbitrage, utilities charge batteries by buying electricity during low-cost periods and then sell that electricity when electricity prices increase."
The California Independent System Operator and Electric Reliability Council of Texas accounted for almost three-fourths of US capacity at the end of 2023, said Morris Greenberg, senior manager with the low-carbon electricity team at S&P Global Commodity Insights. Batteries are most useful whenever and wherever solar capacity accounts for a significant share of load, he added.
CAISO leads the nation in battery-storage capacity with 8.479 GW, or 42.8%, of total US capacity, according to a Commodity Insights compilation of various government filings(opens in a new tab). However, the Electric Reliability Council of Texas is quickly catching up and added the most capacity in the first quarter 2024 with 1.2 GW, or 55.3%, of all US installation.
CAISO and ERCOT are projected to account for 70% of battery storage capacity in EIA data, but only 60% in the S&P Global Commodity Insights forecast, Greenberg said.
Utilities can also make use of batteries to improve grid reliability with services that support the transmission of electricity, known as ancillary services, according to the EIA. One type of ancillary service is frequency regulation, which is the most common use case reported at least once for battery capacity.
"Most batteries are used in multiple ways and have been reported in prior data releases, but we recently began asking utilities to identify the primary purpose of the battery," the EIA said.
The EIA recently published an early release of data from its EIA-860, Annual Electric Generator Report, that includes detailed information on battery storage applications, including information on use cases, generator configuration, and other details on the energy capacity of planned batteries. The early release of the EIA-860 data is the first time the EIA has published the primary purpose of the battery.