This announcement aligns with actions taken by the Trump Administration to and in the United States. The industry’s investment will advance a manufacturing expansion in the United States with the aim of enabling American-made batteries to meet 100% of domestic energy storage project demand.

“The energy storage industry is providing essential power when needed most while boosting domestic manufacturing and creating jobs across the country,” said Jason Grumet, CEO of ACP. “Today’s historic commitment will invest billions of dollars into American communities and position the United States as a manufacturing leader in battery technology that is critical to national and grid security.”������

Building a Pathway to 100% American-Made Grid Batteries��

The U.S. energy storage industry is committed to investing $100 billion in American grid batteries, including both capital for building new battery manufacturing facilities and procurement of American-made batteries for U.S. energy storage projects. Through this commitment, the industry will advance American battery manufacturing leadership, enhance U.S. energy security, provide energy affordability and reliability, and drive international competitiveness.����

This investment represents a clear pathway to supplying 100% of U.S. energy storage projects with American-made batteries by 2030. A pro-business environment, supported by stable tax and trade policy and streamlined permitting, is essential to the industry fulfilling this commitment.��

Booming U.S. Energy Storage Deployments Fuel Manufacturing Resurgence��

Battery energy storage is now a leading energy resource boosting electric grid reliability and keeping energy costs low for families and businesses across America. Since FERC Order 841 was issued in 2018, energy storage deployment has grown 25x. The ongoing growth in energy storage deployment is driving investment in American battery manufacturing facilities.����

The energy storage industry is making significant progress in laying the groundwork for a domestic battery energy storage supply chain, building or expanding more than 25 manufacturing facilities for grid-scale energy storage. With today’s investment commitment, the industry has announced plans to rapidly expand ongoing efforts. ��

The Role of Battery Storage in Unleashing American Energy Dominance��

As communities across the country grapple with skyrocketing energy demand, aging grid infrastructure, and concerns over reliability, battery energy storage is providing a ready-to-deploy solution to these challenges.����

Energy storage optimizes all existing power generation, lowering energy bills and hardening the grid against extreme weather events like and heat waves. As the economy grows, energy storage provides important peaking capacity, freeing up more gas generation to serve as base load and enabling more energy production.����

Energy storage has also been critical for supporting American industrial and technological might, from metals manufacturing in West Virginia to new data centers and AI infrastructure in Texas and Arizona. The need for energy storage resources continues to be strong across the country, as 31 states currently have energy storage projects under construction.��

“Form Energy is proud to be ramping up manufacturing at Form Factory 1 in Weirton, West Virginia, advancing our mission to strengthen the U.S. electric grid with domestically produced, multi-day energy storage. Situated on the historic site of the former Weirton Steel mill—a cornerstone of America’s industrial past—the newly built Form Factory 1 is proving that America’s greatest manufacturing epoch isn’t behind us; it’s unfolding now.” Mateo Jaramillo, Co-founder & CEO of Form Energy, noted, “This investment in American manufacturing not only supports the creation of high-quality jobs in West Virginia but also ensures that the U.S. remains a leader in energy innovation. As the energy storage industry commits to investing $100 billion in American-made grid batteries by 2030, Form Energy is excited to play a key role in building a more reliable, resilient, and secure energy future for our country.”��

“Fluence investments in American battery cell, module, enclosure, thermal management, and controls manufacturing are delivering domestic energy storage products starting this year and will help power U.S. economic growth for decades to come,” said John Zahurancik, Fluence President, Americas. “Our manufacturing facilities in Utah, Texas, Tennessee, and Arizona support more reliable and cost-effective energy production while creating a resilient U.S. supply chain that advances American innovation, jobs, and energy security. These investments are about building the future of energy—right here in the United States.”��

“LG Energy Solution is fully committed to expanding US energy storage manufacturing, with our fist factory lines expected to begin production in 2025 in Holland, Michigan, where we will adapt existing lines to provide 16.5GWh of ESS batteries, with an additional11GWh of capacity planned for the beginning of 2026.” Said Jaehong Park, CEO, LG Energy Solution Vertech. “We have expanded our investment in US manufacturing to meet rising demand; we have currently committed $1.4 billion to our production plan in Holland, MI, with additional investments and capacity expansion to come.”��

“Battery energy storage is keeping the lights on and costs low for consumers across the county. Developers are committed to sourcing batteries made in America to deploy this essential energy resource to more Americans for energy stability and cost savings in the face of increasing demand,” said Stephanie Smith COO, Eolian. “As manufacturers begin ramping up domestic supply, streamlining federal and state policies and permitting processes will make the difference in getting this industry moving quickly and competitively.”��

“Battery energy storage is key to meeting America’s rapidly expanding electricity needs,” said Craig Cornelius, President and CEO of Clearway Energy Group. “As we deploy energy storage at record pace, this investment reflects the industry’s commitment to building these critical grid infrastructure projects with American-made batteries.”

“The �����Ƶ Association congratulates Chris Wright on taking the helm at the U.S. Department of Energy (DOE). We look forward to partnering to advance DOE’s essential role in driving innovation, ensuring energy security, and advancing clean energy solutions. ACP is committed to working with Secretary Wright to address and meet our nation’s rapidly growing electricity demand.”

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“ACP and��its��member companies share the Trump Administration’s concern over the fentanyl crisis��and public health emergency impacting our communities.��ACP recognizes and appreciates the Administration’s early focus on this crisis.

“ACP also supports the Administration’s commitment to lower American energy prices.�� While energy production only represents 5% of our nation’s direct GDP, it drives the productivity of our entire economy, impacting prices of nearly all consumer goods.�� In concert with the other trade associations representing America’s energy resources, ACP is concerned that increasing the costs of energy production inputs will put upward pressure on consumer energy costs and diminish our capacity to unleash energy abundance.

“While the fuel relied upon by wind and solar energy—complemented by battery storage—is free, some parts for these machines that harness these renewable resources are manufactured in Canada and Mexico. As we have made significant progress manufacturing these components in the United States, the benefits of USMCA have been a positive factor in lowering American energy costs. We look forward to working with the Administration as it pursues multiple imperatives.”

“Congratulations to Doug Burgum on being confirmed as Secretary of the Interior and tasked to lead the National Energy Council. We are eager to support the administration’s efforts to make American energy dominance a reality. This whole-of-government approach will be crucial to aligning agencies to advance an ‘all-of-the-above’ energy strategy which is essential to achieving these goals. We look forward to working with Secretary Burgum and the Interior Department to ensure a secure, reliable, and sustainable energy future for all Americans.”

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“This is a disappointing conclusion to an unnecessarily belabored process. The overly rigid regulations are at odds with the innovation needed in this nascent sector and will prevent the U.S. from realizing global leadership in clean hydrogen production, as Congress intended. ACP and others have voiced the need for additional flexibility throughout this process and proposed changes that would launch this game-changing industry. Unfortunately, today’s final guidance falls far short and unnecessarily stringent requirements, such as burdensome time-matching standards, will remain a significant deterrent for developers and investors alike. This is a missed opportunity.” ��

The report, commissioned by the �����Ƶ Association (ACP) and conducted by ICF, analyzed the economy-wide impacts of the IRA’s energy tax credits, finding that the law will incentivize significant investments, create millions of jobs, and boost economic growth—having a lasting impact on the U.S. economy.��

ACP is joined in support of the report findings by five organizations, including the U.S. Chamber of Commerce, the Edison Electric Institute, the National Electrical Manufacturers Association, the National Hydropower Association, and the Nuclear Energy Institute. A copy of the endorsement letter may be found here.��

The study examines the IRA’s impact across various sectors, including power, transportation, buildings, sustainable aviation fuels, hydrogen, and manufacturing. The findings demonstrate the law’s ability to incentivize investments in clean energy technologies and infrastructure, driving economic growth and reducing greenhouse gas emissions. This study underscores the immense potential of the law to drive economic prosperity and energy innovation—a powerful tool for attracting investment, creating jobs, and deploying more energy. ��

The report’s findings highlight the significant economic benefits that will result from the law’s implementation. Key findings include:��

• Massive Economic Impact: The IRA will spur $3.8 trillion in net spending across the U.S. economy, creating a 4x return on taxpayer investment when considering both economic and emissions benefits.��

• Economic Growth: The IRA will grow the U.S. economy by $1.9 trillion, contributing to a stronger and more resilient economy.����

• Job Growth: The law is expected to create 13.7 million jobs over ten years, providing a significant boost to the U.S. labor market.��

• Increased Household Income: Investments resulting from the IRA will add $846 billion to household income, improving the financial well-being of millions of Americans.��

“The clean energy tax credits have significantly increased domestic energy production, revitalizing communities across the country and lowering consumer energy bills. By supporting our nation’s diverse array of energy resources, the IRA is strengthening our national security and enhancing economic competitiveness,” said ACP Chief Executive Officer Jason Grumet. “With energy demand skyrocketing, the American energy industry must rise together to provide electricity that is affordable, reliable, and clean. Simply put, consistent federal policy is essential to American power.”������

“These provisions are catalyzing tremendous private sector investment in new manufacturing and energy infrastructure that will keep our economy competitive for decades to come and ensure the U.S. leads the world developing technologies to bolster energy security, while also reducing emissions,” said Marty Durbin, Senior Vice President for Policy at the U.S. Chamber of Commerce.��

“Energy tax credits are driving innovation and job creation in communities across the country,” said EEI interim President and CEO Pat Vincent-Collawn. “This study further demonstrates how essential these tax credits are for U.S. economic competitiveness and for our member companies’ efforts to help keep electricity bills as low as possible for our customers.”��

“The U.S. is witnessing enormous growth in electricity demand driven by artificial intelligence, onshoring of manufacturing, and other economic activity. Retaining and expanding our energy security through highly reliable nuclear energy generation allows for continued innovation and economic prosperity while supporting our national security interests. The provisions in the current tax code are crucial tools in supporting continued investment in a reliable, affordable, and increasingly clean energy grid of the future. The study released today demonstrates the positive impact the tax credits included in the IRA have on energy sector and the broader U.S. economy,” said Maria Korsnick, President and Chief Executive Officer at the Nuclear Energy Institute.��

“NHA applauds �����Ƶ Association and ICF for conducting this study, which confirms the immense benefits and opportunities for water power that are found in the Inflation Reduction Act. In our industry alone, this landmark law helps incentivize capacity additions at existing hydropower projects, new pumped storage projects, marine energy and adding generation to existing non-powered dams. These opportunities amount to billions of dollars in potential investments for water power. NHA is committed to working with the incoming administration and Congress to keep the IRA in place and make improvements to ensure that existing baseload resources at risk of premature license surrender also receive federal support. Our industry is confident that this law can help water power play a key role in implementing an all-of-the-above American energy strategy that keeps rates low and the lights on,” said Malcolm Woolf, President and CEO of NHA.��

“This study underscores the Inflation Reduction Act’s pivotal role in increasing our domestic manufacturing capabilities to accelerate our economic growth and modernize and electrify our nation’s infrastructure to meet growing energy demand. NEMA’s members have already made $12 billion in investments to date around the country to strengthen domestic manufacturing. In the upcoming months, we look forward to working alongside our industry allies and with our partners in Congress and the new Administration to protect key provisions of the IRA that continue to facilitate our nation’s energy transition toward a more connected, resilient energy future,” said Debra Phillips, NEMA President and CEO.

About this report ��
ICF is a non-partisan, non-political company that delivers a broad and diverse range of independent, unbiased, objective analyses and related consulting services to clients. This report may not be construed as ICF’s endorsement of any policy, regulatory, lobbying, legal, or other advocacy position or organization or political party. Any conclusions presented herein do not necessarily represent the policy or political views of ICF. ICF’s services do not constitute legal or tax advice.����

• Residential installations hit all-time high

HOUSTON/WASHINGTON, D.C.,��December 12, 2024��–The U.S. energy storage market continued its strong growth in Q3 of 2024, with the grid-scale segment setting a new Q3 record at 3,431 megawatts (MW) and 9,188 megawatt-hours (MWh) deployed.

According to the �����Ƶ Association’s (ACP) and Wood Mackenzie’s latest U.S. Energy Storage Monitor report released today, Q3 set the highest record for third-quarter installations, with a total of 3,806 MW and 9,931 MWh deployed, an 80% and 58% increase over year-ago numbers.

Texas and California Markets Show No Signs of Slowing
Grid-scale energy storage deployments in both Texas and California were robust in Q3, as the two markets continue to embrace storage as a grid solution. Texas tripled installations compared to the previous quarter with nearly 1.7 GW added, and California produced the highest GWh of installations with nearly 6 GWh added, thanks to its focus on longer duration plants.

Arizona, Colorado, Florida, and Vermont also saw installations in Q3, showing an appetite for grid-scale storage deployment across the country.

“We are seeing the energy storage industry fill a real need across the country to provide reliability in an affordable and efficient manner for communities,” said John Hensley, SVP, Markets and Policy Analysis for ACP. “With 64 GW of new energy storage expected in the next four years, the market signal continues to be clear that energy storage is a critical component of the grid moving forward.”

“The rapid energy storage deployment we’re seeing in the United States not only enhances reliability and affordability but also drives economic expansion. This additional storage capacity is helping meet increasing energy demand and is supporting growing industries like manufacturing and data centers,” said Noah Roberts, ACP’s VP of Energy Storage. “Energy storage is crucial for energy security and to help outpace rising demand.”

Residential Market Breaks All-Time Quarterly Record
The residential market set an all-time high with a record-breaking 346 MW of residential storage installed in Q3 2024, a 63% increase over the previous quarter. California, Arizona, and North Carolina led growth, installing 56%, 73% and 100% more residential storage in Q3 than in Q2 – despite residential battery supply shortages.

Community-scale, commercial and industrial (CCI) remained steady, with 29 MW installed, a slight 4% decrease from year-ago numbers.

Grid-scale and Residential Sectors to Lead Future Growth
The grid-scale and residential segments will continue to lead the market, with grid-scale installations projected to more than double by 2028 to reach a cumulative volume of 63.7 GW, and residential installing 10 GW of storage in the same time period.

“We have seen consistent growth in the market this year, especially in the grid-scale segment,” said Nina Rangel, senior research analyst at Wood Mackenzie. “Overall, storage installations will grow 30% in 2024, signaling the industry’s strongest year yet. However, it will be difficult to keep this pace. Between 2025 and 2028 we are projecting an annual average growth rate of 10%, as early-stage development constraints continue.”

Allison Weis, global head of storage of Wood Mackenzie noted that while consistent growth is expected, there are some uncertainties with the new Presidential administration, as changes to certain tax credits and protectionist measures in the form of increased tariffs could come into play.

“While there might be potential opportunities in a new pricing environment for domestic manufacturers in terms of competition, any major shifts in tax incentives or increased tariffs could outweigh benefits and have an impact on new project development,” said Allison Weis, global head of storage for Wood Mackenzie.

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For further information, contact:��

ACP’s media relations team:��

Phil Sgro
771.208.9388
press@cleanpower.org����

Wood Mackenzie’s media relations team:��

Mark Thomton
+1 630 881 6885��
Mark.thomton@woodmac.com����

Hla Myat Mon
+65 8533 8860����
hla.myatmon@woodmac.com������

The Big Partnership (UK PR agency)
woodmac@bigpartnership.co.uk��������

About Wood Mackenzie��
Wood Mackenzie is the global insight business for renewables, energy and natural resources. Driven by data. Powered by people. In the middle of an energy revolution, businesses and governments need reliable and actionable insight to lead the transition to a sustainable future. That’s why we cover the entire supply chain with unparalleled breadth and depth, backed by over 50 years’ experience in natural resources. Today, our team of over 2,000 experts operate across 30 global locations, inspiring customers’ decisions through real-time analytics, consultancy, events and thought leadership. Together, we deliver the insight they need to separate risk from opportunity and make bold decisions when it matters most. For more information, visit woodmac.com.����

• $750 million in energy cost reductions in the Summer of 2024��

WASHINGTON DC, December 9, 2024 — The �����Ƶ Association (ACP) today released an analysis highlighting how recent significant additions of energy storage capacity over the past year in Texas has resulted in lower energy costs for consumers, the ability to avoid conservation appeals, and has enabled the power grid to better navigate extreme weather events.����

Key findings include:����

• Energy demand in Texas has skyrocketed over the past two years.������

• Large capacity additions of energy storage (5 GW) over the course of one year in Electric Reliability Council of Texas (ERCOT) region helped outpace rising energy demand.��

• Energy storage capacity additions contributed to $750 million in cost reductions, creating savings for consumers.����

• Energy storage capacity additions helped prevent conservation appeals during Summer 2024 and helped ERCOT navigate prolonged moments of stress that would traditionally threaten the grid with power outages.��

ERCOT has in maintaining reliability at critical moments in a cost-efficient manner.����

“Energy storage is doing the job it was designed to do, delivering affordable power for Texas during the most critical moments, whether historic heatwaves or winter storms,” said Noah Roberts, VP of Energy Storage for ACP. “This flexible resource is both boosting the reliability of the grid and delivering cost savings for families and businesses. It has truly been a game changer for the state and ERCOT’s ability to navigate moments of stress on the power grid.”����

“Significant load growth in ERCOT over the last two years has created record-setting electricity demand in the state and new stresses on the power grid,” said John Zahurancik, Fluence President, Americas. “During this time of growing demand, we’ve seen a rapid deployment of battery storage capacity across the state, increasing 5X from 2022 to 2024 and delivering more than $750 million in savings for consumers. As this analysis clearly demonstrates, these battery storage resources are central to an all-of-the-above approach to energy independence, and a commonsense solution that brings greater flexibility, resilience, and affordability to the state of Texas.”��

“Texas continues to experience strong growth and unprecedented energy demand. Battery storage is essential in meeting this demand by providing cost-efficient energy when it is most needed,” said Eric De Caluwé, Managing Director of Flexible Generation for ENGIE North America. “As storage developers and operators, we are dedicated to ensuring that Texas residents and businesses have reliable electricity. Battery storage lowers consumer costs by storing surplus energy and releasing it during peak demand, avoiding the need for more expensive resources. These systems are highly flexible and respond quickly, significantly enhancing grid reliability during critical moments.”��

Texas has seen skyrocketing energy demand in recent years due to increasing population, electrification, and new industrial energy users. The state set records for electricity demand in both 2023 and 2024. This rise in demand, coupled with increasing weather events, has resulted in significant stress placed on the power grid in Texas.��

However, in the past year alone, ERCOT has deployed 5 GW of energy storage. This has contributed to the state’s ability to outpace rising energy demand and help avoid conservation appeals and power outages.����

Texas and its independent market operator, ERCOT, has thus served as a prime example of how rapidly our energy systems must evolve in the United States to be able to consistently deliver reliable and affordable energy to consumers—especially when Texans need it most.���� ��

Texas is expected to continue adding large amounts of energy storage capacity to its grid, with nearly 4.5 GW currently under construction and an additional 7.3 GW in the pipeline.����

To read more, access ACP’s analysis HERE.����

• Second-highest quarter on record for total installations

HOUSTON/WASHINGTON, October 1, 2024 — The U.S. energy storage market experienced significant growth in the second quarter, with the grid-scale segment leading the way at 2,773 MW and 9,982 MWh deployed.

According to the �����Ƶ Association’s (ACP) and Wood Mackenzie’s latest U.S. Energy Storage Monitor report released today, every segment of the market experienced growth in Q2 over year-ago totals, with community (CCI) increasing 61% to 87 MWh and residential increasing 12% to 423 MWh. In total, the market saw 3,011 MW and 10,492 MWh deployed, the second-highest quarter on record behind Q4 2023 at 13,437 MWh.

California, Arizona, and Texas were responsible for 85% of installations.

“Energy storage is becoming a mainstay of the power grid, delivering a more resilient and affordable grid,” said John Hensley, SVP of Markets and Policy Analysis for ACP. “Additional storage capacity across U.S. markets is helping to provide a cost-effective and reliable solution to serious problems such as rising energy demand, a timely need for more overall capacity, and more volatile and extreme weather events. To keep the trend going, it’s important to find solutions for development challenges such as lengthy interconnection queues and permitting and siting.”

“This quarter showed massive growth compared to year-ago levels and the grid-scale segment continues to be the main driver,” said Vanessa Witte, senior analyst with Wood Mackenzie’s energy storage team. “Community performed strongly as well. And while residential did expand, it was still a somewhat slow quarter as California’s meteoric growth faltered, combined with low installations in Hawaii and Puerto Rico, which continue to be affected by incentive changes.”

Strong growth in 2024 sustained in subsequent years

According to Wood Mackenzie’s five-year outlook for the U.S. energy storage market, total U.S. storage deployments will grow 42% between 2023 and 2024, but capacity additions will level out as deployments increase with an average annual growth rate of 7.6% between 2025 and 2028. Across all segments, the industry is expected to deploy 12.8 GW/ 36.9 GWh in 2024.

The grid-scale segment is projected to increase 32% year-over-year with 11 GW/32.7 GWh deployed by year-end, and 62 GW cumulatively from 2024-2028. Over the next five-years,12 GW of distributed storage will be deployed. The residential segment will constitute 80% of distributed power capacity installations, with 10 GW of storage capacity additions between 2024-2028. The CCI segment is forecasted to install 2.5 GW of storage between 2024 and 2028, a modest reduction from previous forecasts.

“Growth flattens in 2025 and 2026 as project capacity is pushed into later years of the forecast largely due to early-stage development challenges,” said Witte. “The CCI segment continues to experience high barriers to growth including the complexity of developing these projects and the limited availability of financial value streams.”

###

Wood Mackenzie’s media relations team:
Mark Thomton
+1 630 881 6885
Mark.thomton@woodmac.com

Hla Myat Mon
+65 8533 8860
hla.myatmon@woodmac.com

The Big Partnership (UK PR agency)
woodmac@bigpartnership.co.uk

About Wood Mackenzie
Wood Mackenzie is the global insight business for renewables, energy and natural resources. Driven by data. Powered by people. In the middle of an energy revolution, businesses and governments need reliable and actionable insight to lead the transition to a sustainable future. That’s why we cover the entire supply chain with unparalleled breadth and depth, backed by over 50 years’ experience in natural resources. Today, our team of over 2,000 experts operate across 30 global locations, inspiring customers’ decisions through real-time analytics, consultancy, events and thought leadership. Together, we deliver the insight they need to separate risk from opportunity and make bold decisions when it matters most. For more information, visit .