U.S. Installs 41 MW of Storage in Q2 2015; PJM and California Remain Key Markets

GTM Research and the Energy Storage Association report 40.7 MW of energy storage were deployed in the second quarter of 2015, up from 3.9 MW one year ago.

Key Details

  • The second quarter figures were the largest deployment since Q4 2012
  • Front-of-meter or “utility-scale” storage accounted for 87% of all storage deployments
    • PJM is the leading utility-scale market, with 100 MW of deployments since Q1 2013 driven largely by frequency regulation benefits
    • The largest contributor was the 31.5 MW Grand Ridge Energy Storage project; the project is located in Illinois and provides fast frequency regulation to PJM
  • While a smaller market segment, behind-the-meter storage has gained traction in California due to public policy
    • Since Q1 2013, California has installed 1.3 MW of residential and 10.8 MW of non-residential behind-the-meter storage
    • In the last quarter, the majority of California projects where supported by the Self-Generation Incentive Program (SGIP)
  • But, other states are joining the fray:
    • Oregon mandated storage procurement for electric utilities
    • Massachusetts announced a $10 million storage initiative
    • Tucson Electric Power solicited vendors to build a 10 MW storage system

Implications

Energy storage capacity continues to grow largely in niche markets: ancillary services (e.g., PJM) or distributed energy storage driven by public policy (e.g., California). However, additional policy and market developments point to broader growth opportunities for energy storage.

More Information

Greentech Media: The U.S. Deployed 41MW of Storage in Q2 2015, Best Quarter in 2.5 Years

K&L Gates Hub: Oregon Enacts Energy Storage Legislation

Utility Dive: Massachusetts Launches $10 Million Energy Storage Initiative

Penn Energy: TEP Issues RFP to Build 10 MW Energy Storage Facility

This report is part of the Clean Tech & Sustainability Minute series. To view all featured Minutes, please click here.

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Contributing Authors

Paul Quinlan Clean Tech Manager

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