US energy storage market grows to 4.8 GW in 2022

The US energy storage market installed a record 4,798 MW/12,181 MWh in 2022 as it continues to expand rapidly, Wood Mackenzie said on Wednesday.

Although there was a slowdown in the final quarter of the year, the growth trend is clear, according to the analyst firm, with the market expected to install almost 75 GW between 2023 and 2027.

In the fourth quarter of 2022, installations across all segments totalled 1,067 MW, down 26% quarter-over-quarter, shows the quarterly energy storage report of Wood Mackenzie and the American Clean Power Association (ACP). At 848 MW, utility-scale deployments were below the levels in the previous two quarters, reflecting supply chain and interconnection constraints, which led to over 3 GW of projects slated to come online in the fourth quarter being delayed or cancelled.

The residential storage segment, meanwhile, increased to another record of 171 MW in the final three months of the year.

“Despite a slow fourth quarter, total 2022 installations were still 44% over 2021. Grid-scale installations increased by 7% year-over-year, CCI [community-scale, commercial and industrial] by 3%, and residential experienced the strongest growth with installations up 36%,” said Vanessa Witte, senior analyst with Wood Mackenzie’s energy storage team.

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