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Are Investment Tax Credit Changes in Store for Energy Storage? | Morgan Lewis

Wood Mackenzie: US could be a 12GWh energy storage market in 2021

Published: 9 Jun 2021, 09:56 By: Andy Colthorpe AES Alamitos 100MW / 400MWh battery project in California officially went online on the first day of 2021. Image: AES Corporation. Nearly 12,000MWh of energy storage could be installed in the US during 2021 and the market will continue growing significantly over the next few years, according to research and analysis group Wood Mackenzie Power & Renewables. The forecast has been provided in Wood Mackenzie’s latest quarterly ‘US energy storage monitor’ report, which is published in partnership with the industry’s national Energy Storage Association (ESA). Along with that massive figure for this year Wood Mackenzie in March said that 2020 deployments were about 1,500MW / 3,500MWh the group is predicting that by 2026 the US will be a 33GWh annual market, worth around US$8.5 billion.

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The solar energy boom is the modern equivalent of the California Gold Rush of 1848.   Data from Wood Mackenzie Power & Renewables and the Solar Energy Industries Association notes that it took 40 years to reach 1 million solar installations in the U.S., but just three more years to hit 2 million installations. And the forecast for 2021 alone is 3 million installations.   Green energy exchange-traded funds (ETFs) are on the rise as earnings improve and investors pile into solar stocks. This is evidenced in the bellwether Invesco Solar ETF (TAN), which has more than doubled over the past year, though lately, it has cooled off.  

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