The electric grid’s battery capacity expanded 66% last year, and there’s more to come

Henry Epp | Source: MARKETPLACE | Posted 03/13/2025

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Big banks of batteries are an important part of the renewable energy transition. Their role is to store power generated when the sun is shining or the wind is blowing so that it can be used when it’s dark or the wind is calm.

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The electric grid's battery capacity in the U.S. saw a significant increase of 66% last year, marking a crucial step in the transition to renewable energy. These battery systems play a vital role by storing energy generated during peak production times, such as sunny or windy conditions, and releasing it when demand is high. With the potential for even greater capacity additions this year, the importance of these systems is underscored by their ability to 'time-shift' power, allowing energy companies to capitalize on fluctuating market prices.

As the costs of battery technology continue to decline—thanks in part to advancements in electric vehicles and consumer electronics—the outlook for battery storage remains strong. Government incentives, such as tax credits from the Inflation Reduction Act, have further supported this growth. Despite potential challenges, including the possibility of tariff impacts and changes in government policy, the demand for electricity is expected to rise, making battery storage a cost-effective solution for meeting future energy needs.

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Source Link: https://www.marketplace.org/2025/03/12/the-electric-grids-battery-capacity-expanded-66-last-year-and-theres-more-to-come/

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The electric grid’s battery capacity expanded 66% last year, and there’s more to come

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