U.S. battery storage capacity is projected to surge to 204 gigawatts by 2035, a dramatic increase from the 31 gigawatts deployed through 2024, according to a new forecast from BloombergNEF. The projection, equivalent to more than 800 gigawatt-hours of capacity, highlights the rapid expansion of energy storage even amid federal policy headwinds. The growth marks a sharp break from the challenges facing America's green energy segment, as the 'One Big Beautiful Bill' eliminated numerous tax credits in July that had previously supported renewable energy deployment.
The forecast underscores the resilience of the battery storage market, which continues to outperform prior expectations despite the removal of incentives. Other renewable energy systems, such as those in which companies like EverGen Infrastructure Corp. (TSX.V: EVGN) (OTCQX: EVGIF) operate, are also scaling up to add further momentum to the sector. The growth is driven by declining battery costs, improving technology, and increasing demand for grid reliability and renewable integration.
The implications of this surge are significant for the U.S. energy landscape. Battery storage is critical for balancing the intermittent nature of solar and wind power, enabling higher penetration of renewables. The projected capacity could support substantial decarbonization efforts, reducing reliance on fossil fuel peaker plants and enhancing grid stability. However, the policy environment remains uncertain, with the elimination of tax credits potentially slowing investment in other clean energy technologies.
Industry analysts note that the storage boom is also being fueled by state-level mandates and utility procurement targets. California, Texas, and New York are leading the charge, with large-scale battery projects coming online to address peak demand and renewable curtailment. The Inflation Reduction Act, while not directly benefiting storage in the same way as solar or wind, has provided some support through standalone investment tax credits, though the recent bill curtailed some of those benefits.
The growth trajectory positions the U.S. as a global leader in battery storage, competing with markets like China and Europe. However, challenges remain, including supply chain constraints, permitting delays, and grid interconnection bottlenecks. Despite these hurdles, the BloombergNEF forecast suggests that energy storage will play an increasingly central role in the nation's energy transition, outpacing earlier expectations and offering a bright spot in an otherwise challenging policy environment for renewables.
