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The Evolving Potential of Battery Electricity Storage in the U.S.

Over the last decade, the U.S. has had substantial growth in the renewable energy sector. In 2021, the renewable energy industry remained strong, despite the challenges it faced from the Coronavirus Disease (COVID-19) pandemic. Wind and solar generation capacity added an estimated 13.8 gigawatts (GW) to the existing 312 GW renewable energy production capacity in just the first eight months of 2021, a rise of 28% over the same period in 2020. Many cities, states, and utilities have set ambitious clean energy goals, increasing their renewable portfolio standards and enacting energy storage procurement mandates. Many factors have led to an increase in renewable energy production, which has seen technology improvements and decreased costs throughout the sector, and most notably, the increased competitiveness of battery storage facilities.

This commentary analyzes the intricacies of battery storage as the technology has seen a large uptick as concerns about climate change and support for environmental, social, and governance considerations grow and demand for cleaner energy sources from most market segments accelerates. At the same time, the Biden administration’s vision of fully decarbonizing the U.S. economy is helping spur activity in the renewable sector that will likely drive further growth—particularly if the proposed legislation is enacted.