Energy storage delays grid construction

Solar, battery storage, and wind energy account for 95% of all active capacity in the queues. The unprecedented volume of requests in queues points to significant shifts in the generation mix of the US power system but is also evidence of a significant structural and regulatory bottleneck for plants seeking grid connection.

It's not just the reforms happening in the balancing market that are having an impact on battery energy storage, but National Grid ESO is also changing the connections process, with the first major reform being the two-step process.

Despite predictions, 2023/24 saw a shortfall in battery storage projects connecting to the grid. What can be done to boost these connections? Are market reforms or extensive policy changes the answer, or perhaps a combination of the two?

However, deploying grid infrastructure is not done overnight. Due to its nature, power lines need to consider social and environmental impact across big areas, along all their routes, involving lengthy planning and permitting processes and engaging multiple stakeholders, which consume a lot of time, potentially delaying deployment.

In total, the data set consists of 11,597 projects, or 2.6 Terawatts (2,600 gigawatts) of generation and storage that are actively seeking grid interconnection, plus 17,873 projects that entered the queues but were withdrawn, and 4,155 projects that moved through the queues and reached commercial operations.

The issue that most people point to is the grid connection queue. Estimates suggest that the queue is now approaching the terawatt range. In fact, the amount of battery energy storage system connections in the queue is forecast to outstrip even the most optimistic future battery requirements needed to meet net zero.