Inflection Point: Energy Storage in 2021
Why Energy Storage?
The inability to cost-effectively store electrons has been the biggest obstacle to a more renewable-powered grid, but not anymore. Energy storage—most often lithium-ion-based battery storage—allows businesses to avoid peak pricing and utilities to reduce wholesale demand and energy costs while increasing reliability and supporting the clean energy transition.
By the Numbers: Energy Storage in North America
The energy storage industry has skyrocketed in North America over the last decade. In 2010, only seven storage systems were online across the continent, providing 59 megawatts (MW) of power capacity. By 2018, those figures grew to 125 fully operational projects totaling 869 MW in capacity.
Fast forward two years to 2020, when nearly 2,000 MW of stand-alone storage, or storage-plus-solar capacity was installed across the United States and Canada. That is more than double the growth of the industry’s eight-year infancy in a single year!
Even 2020’s staggering developmental accomplishments pale in comparison to the 7,000 MW projected to be built in 2021. For perspective, that totals over $10 billion in installed project Capital Expenditure (CapEx), with cumulative market size expected to exceed $100 billion by 2026.
Energy Storage Boom: Why Now is the Time to Invest in the Future
Simply put, 2021 is the inflection point for the energy storage industry in North America. Spurred on by the rapidly falling costs of battery storage systems as well as growing social, political, and corporate interest in sustainability, the storage industry is fast-tracked for economic opportunity and success in the years to come. With climate-induced threats accelerating, the time is now to improve our energy infrastructure, in terms of both carbon and reliability.
At Convergent Energy + Power (Convergent), we entered the energy storage space relatively early, and have stayed ahead of the curve in identifying innovative opportunities to solve our customers’ challenges. We began with two people in 2011 and Convergent’s growth mirrors that of the broader industry. With over 60 employees today, we are working on over 600 active projects across 40 states and the Province of Ontario, with potential CapEx deployments totaling more than $3.6 billion. In addition to improving our industrial and utility customers’ ESG performance and carbon footprint, our battery storage solutions deliver significant savings – often up to 50% – on their electric and related infrastructure spend.
Find Out How Much Your Company Can Save With Energy Storage Technology
In summary, the storage and green energy sectors are booming. At Convergent, we help our customers save money while increasing their resiliency and sustainability. For more information on how these exciting times translate into specific solutions for you, please feel free to reach out and schedule an introductory conversation to learn more today.
1 Battery Storage in the United States: An Update on Market Trends (eia.gov)
2 Wood Mackenzie; May 2021 “Energy Storage Market Study”
CEO Johannes Rittershausen co-founded Convergent in 2011 and has guided its growth from a two-person company into the most dependable provider of energy storage solutions in North America.