Construction activity points to another record year ahead for battery storage

The US battery power plant building boom continued in the first three months of 2024, with project completions and construction activities accelerating.

Developers added 1,260 MW of large-scale battery power storage capacity at 29 facilities or major project phases in the first quarter, rising 104% from a year ago and pushing total installed nonhydroelectric energy storage resources to 19 GW, according to S&P Global Market Intelligence data.

Another roughly 12 GW of battery capacity additions are under construction, including 9 GW with planned 2024 online dates, Market Intelligence data through May 20 indicates. That points to another possible record year for lithium-ion battery systems, which typically offer up to four hours of energy storage.

Of the more than 150 large-scale installations or project phases under construction, 22 have a battery power storage capacity of at least 200 MW, compared with 19 facilities of that scale currently in operation.

Another GWh giant

The 380-MW/1,416-MWh Gemini Battery Storage Project in Clark County, Nev., was the largest storage asset completed in the first quarter. Developed by Primergy Solar LLC, an affiliate Quinbrook Infrastructure Partners Pty Ltd, the solar-battery hybrid is paired with the 960-MW Gemini Solar Project and underpinned by a 25-year power purchase agreement with Berkshire Hathaway Energy subsidiary NV Energy Inc.

Gemini joins a growing list of big US battery projects with over a 1 GWh of energy storage capacity. Others include Vistra Corp.'s Moss Landing Battery Storage Facility in Monterey County, Calif., Terra-Gen LLC's Edwards & Sanborn solar-plus-storage complex in Kern County, Calif., NextEra Energy Inc.'s Desert Peak Energy Storage I Project in Riverside County, Calif., and NextEra's Sonoran Battery Storage Project in Arizona.

Clearway Energy Group LLC delivered its 136-MW/544-MWh Arica Battery Storage Project and 50-MW/200-MWh Victory Pass Battery Storage in the first quarter, both of which are colocated at adjacent solar farms in Riverside County, Calif.

Several additional large-scale battery projects also crossed the finish line in April and May, pointing to an ongoing strong development push.

120 GW planned through 2030

Roughly 120 GW of nonhydro storage resources in the Market Intelligence dataset are planned through 2030, including 28 GW with planned 2024 online dates and 44 GW intended for 2025. Those developments are part of a broader and more speculative pool of storage projects under study in grid operator interconnection queues.

But developer ambitions routinely outpace actual installations by wide margins. In 2023, for instance, developers added 7.7 GW after starting the year with plans to add 22 GW, Market Intelligence data shows.

The latest S&P Global Commodity Insights outlook for 2024 battery storage additions totals 11 GW, including 2.4 GW of behind-the-meter systems.

Developers may try to accelerate near-term plans in response to the Biden administration's recently proposed boost in tariff rates for batteries made in China, with the rate for lithium-ion batteries not used in electric vehicles rising from 7.5% to 25% in 2026.

France-based energy company Engie SA, which in 2023 purchased US battery developer Broad Reach Power LLC, plans to pick up its pace because of "what could happen in 2026," CEO Catherine MacGregor said on the company's May 17 earnings call.

Sunbelt batteries

US battery storage development remains heavily concentrated in California, Texas and broader Desert Southwest.

California continues to lead with 9,325 MW in operation through May 20, Market Intelligence data shows, compared with 5,014 MW in Texas. The only other state with over 1 GW in operation is Nevada, with 1,138 MW, according to the data.

The Texas pipeline of planned nonhydro storage resources totals over 46 GW, compared with 36 GW in California. Another 8.5 GW is planned in Nevada, followed by Arizona with 5.9 GW, New York with 3.4 GW and Oregon with 3.1 GW.