ENERGY STORAGE
ENERGY STORAGE
Corporate Investments in Energy Storage Reach $ 660 Million in Q3 2016
According to the latest edition of GTM Research and ESA’ s U. S. Energy Storage Monitor, corporate investment in energy storage reached an all-time high in terms of quarterly investments in Q3. Disclosed venture funding and project finance totaled $ 660 million in the third quarter of the year, bringing the annual total to $ 812 million.
T he largest announced deal during the quarter was $ 300 million in project financing from the Electric Gas & Industries Association for Tabuchi Electric. The report notes that Advanced Microgrid Solutions also closed a large project financing deal worth $ 200 million with Macquarie.
“ Financing activities in this most recent quarter are noteworthy not just because of the scale, but also because project financing made up a significant portion of the total. While one quarter alone doesn’ t constitute a trend, growth in project financing, especially in the residential segment, is a harbinger for further strengthening of deployment business models.”
- Mr. Ravi Manghani, GTM Research’ s director of energy storage
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Compared to corporate investment, deployments for the quarter were relatively quiet, however, as no front-of-meter projects above 1 megawatt were brought on-line. Across all segments, the U. S. saw 16.4 megawatts of energy storage deployed in the third quarter of 2016.
The behind-the-meter segment, which is made up of residential and commercial deployments, accounted for the majority of the quarter’ s storage deployments. The U. S. deployed 14.1 megawatts of behindthe-meter storage in the third quarter of the year, which is essentially flat year-over-year.
Despite the low deployment total for the quarter, GTM Research expects a strong finish for 2016, as several front-of-meter projects are slated to come on-line in December. According to the report, the U. S. annual energy storage market will grow to 260 megawatts in 2016, up from 226 megawatts in 2015.
EQ December 2016
“ In 2016 we are seeing a critical trend in energy storage deployment— a wider range of competitive applications is becoming available to storage systems, and as a result demand for longer-duration systems is increasing. Measured in megawatt-hours, the industry is projected to grow by more than 284 percent by the end of the year, reflecting a broader set of applications, an increase in distributed storage systems, and a larger role in grid reliability like the Aliso Canyon procurements.”
- Mr. Matt Roberts, Executive Director of the Energy Storage Association
Key Findings From The Q4 2016 U. s. Energy Storage Monitor
• Corporate investments in energy storage totaled $ 660 million in Q3 2016
• U. S. deployed 16.4 megawatts of energy storage in Q3 2016
• Behind-the-meter deployments accounted for 86 percent of total megawatts deployed in Q3 2016
• Lithium-ion batteries dominated the energy storage market for the eighth straight quarter, representing 96.2 percent of the market in Q3 2016
• Total closed the company’ s acquisition of Saft in July 2016
• Measured in megawatt-hours, the industry is projected to grow by more than 284 percent by the end of 2016
• SCE and SDG & E have contracted 84.5 megawatts of energy storage as part of Aliso Canyon procurement
Source: greentechmedia
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