Energy storage project construction lags behind

4 FAQs about [Energy storage project construction lags behind]

How did energy storage grow in 2022 & 2023?

The US utility-scale storage sector saw tremendous growth over 2022 and 2023. The volume of energy storage installations in the United States in 2022 totaled 11,976 megawatt hours (MWh)—a figure surpassed in the first three quarters of 2023 when installations hit 13,518 MWh by cumulative volume.

Why are battery projects being delayed?

At the same time, sustained pressure in the supply chain for storage components has not yet fully abated— particularly transformers, substation equipment, and other electrical engineering equipment—which has led in some cases to equipment stockpiling, higher prices, and ultimately an increase in delays for battery projects.

What do Lenders look for in an energy storage project?

OPERATING RISKS: Lenders generally will conduct diligence to understand an energy storage project’s operating limitations and operation and maintenance (O&M) costs. As part of that process, lenders will look for an O&M agreement with an experienced operator that will ensure that their project will be managed within its operating limitations.

What does reg-132569-17 mean for energy storage?

ITC PROPOSED REGULATIONS (REG-132569-17): The guidance retains the Code’s broad approach to defining new ITC-eligible energy storage property but also includes a nonexclusive list of qualifying technologies. The guidance confirms that a separate PTC-generating project may be co-located with a separate ITC-eligible project.

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