Dive Brief:
There will be 8.5 GW of new storage added to the U.S. grid by the end of 2021, and another 2 GW annually through 2025, according to new estimates from S&P Global Market Intelligence. Storage projects paired with renewable energy could see the strongest growth due to tax credits, falling development costs and the potential for higher gas prices.
These hybrid economics are driving new storage build into a greater proportion of markets than we d previously forecast, Steve Piper, director of energy research with S&P, said Wednesday during a presentation of the firm s Q4 Power Forecast.
The growth of new storage resources is helping to fuel the electric transition, but Piper also said that S&P expects the generation market share for zero-carbon resources to increase only marginally from 2021 to 2035, from 39% to 47%.