Corporate investment in energy storage nearly hit $660 million in the third quarter this year, a five-fold increase from third quarter 2015, according to the latest U.S. Energy Storage Monitor from GTM Research and the Energy Storage Association.
The all-time high mark in investments is an indication that more and more companies are entering the energy storage space. “More players are coming into the sector, and there more are on the horizon,” Matt Roberts, executive director of the Energy Storage Association, said.
GTM Research expects a strong finish for 2016. Several large utility-scale projects are expected online before year end. Southern California Edison and San Diego Gas & Electric have contracted for 84.5 MW of storage to make up for the generation put out of service by the Aliso Canyon natural gas leaks. The third quarter report sees the U.S. annual energy storage market growing to 260 MW in 2016, up from 226 MW in 2015.
Roberts also noted two other trends occurring within that trajectory. Even as more megawatts are installed, they are throwing off less revenue, he said. “Prices are dropping so fast that net value is going down.”