Growth of Battery Energy Storage in the U.S. Grid Faces Local Opposition Amid Safety Concerns

Battery Energy Storage Growing on U.S. Grid, But Facing Some Local Resistance
Published: March 7, 2025
By Concentric Staff Writer

Key Takeaways

The U.S. grid is witnessing a historic surge in energy storage, primarily through the installation of lithium-ion battery systems. This growth is largely driven by the need to balance renewable energy generation and accommodate an increase in energy demand, particularly from data centers. However, a series of fires at lithium-ion facilities, especially in California and New York, has raised public concerns and resistance to new developments. As safety and sourcing issues related to lithium-ion technology become more prominent, there is a growing interest in exploring alternative energy storage technologies.

Battery energy storage systems (BESS) are expanding rapidly across the U.S. grid, yet the technology is encountering challenges. The predominant technology being deployed—lithium-ion storage facilities—has experienced incidents of fires that have led some communities to question the safety of nearby installations. Despite these concerns, the deployment of BESS has soared in recent years. However, the election of President Donald Trump has introduced uncertainty, as he has frozen funding from the Inflation Reduction Act (IRA), which was instrumental in driving new resource additions. The IRA included a 30% investment tax credit for standalone energy systems and solar/storage projects, provided construction commenced in 2024.

According to the U.S. Energy Information Administration (EIA), the U.S. added 5 GW of new BESS in the first seven months of 2024, a significant increase compared to just 4 MW added back in 2010. The EIA notes, “Battery energy storage systems provide electricity to the power grid and offer a range of services to support electric power grids,” including balancing supply and demand, facilitating price arbitrage, and storing renewable energy for later use.

At the start of 2024, the EIA estimated that battery storage would account for 23% of new resource additions nationwide (14.3 GW), ranking second only to solar, which was projected to represent 58% of new resources (36.4 GW). In contrast, natural gas was expected to contribute only 4% (2.5 GW) and wind 13% (8.2 GW). The EIA also projected that battery energy storage would double in capacity throughout 2024, with developers planning to add 14.3 GW to the existing 15.5 GW. In 2023, battery storage experienced a 70% increase, adding 6.4 GW of new capacity.

Texas and California are leading the charge, with approximately 82% of new storage anticipated in these states in 2024—6.4 GW in Texas and 5.2 GW in California. Texas set a new record for solar/BESS installations in 2024, effectively managing critical evening peak demand. However, researchers cautioned that cold winter conditions could hinder solar/BESS availability, as peak demand in Texas may shift to morning hours. This shift creates a potential risk that solar-battery pairings may not meet demand, particularly if outages from thermal power plants exceed expectations.

During the evening hours from 6 p.m. to 9 p.m. in 2024, the average discharge from BESS in Texas was 714 MW. Notably, on August 20, 2024, a peak demand record was established, with BESS output reaching 3,927 MW at 7:35 p.m. Wholesale prices have also played a role in BESS growth; real-time wholesale prices in the Electric Reliability Council of Texas averaged $28 in 2024, a decrease from $97 the previous year. In the 6 p.m. to 9 p.m. time slot, wholesale prices averaged $80 in 2024, down from $332 in 2023. While these reductions benefit consumers, they may pose challenges for the continued growth of battery storage and other forms of dispatchable generation.

In June, New York Governor Kathy Hochul announced plans to deploy 6 gigawatts of energy storage by 2030, as part of the state’s commitment to achieving 70% renewable electricity by 2030 and 100% zero-emission electricity by 2040. This initiative stems from the Climate Leadership and Community Protection Act, clean energy legislation passed in 2019. Despite these plans, local opposition has emerged; residents on Staten Island launched a petition against NineDot Energy’s 5 MW/20 MWh battery storage project, which is currently under construction. Residents expressed surprise at the facility’s development and voiced concerns about potential dangers associated with its proximity to homes.

In Duanesberg, New York, officials passed a resolution in January 2025 prohibiting the construction of new energy storage facilities in the town. Meanwhile, in California, the California Public Utilities Commission (CPUC) proposed new standards for BESS on January 27, which are set to be implemented in March. These proposed regulations, which adopt General Order 167-C, aim to establish maintenance and operation standards for energy storage systems and require BESS facility owners to coordinate emergency plans with local authorities.

The CPUC has noted a significant increase in energy storage in California, rising from 500 MW in 2019 to 13,300 MW in 2024. Approximately 11,600 MW of this capacity is utility-scale, representing 22% of the state’s peak electric demand. The need for energy storage in California is projected to reach 52,000 MW by 2045. However, the CPUC highlighted that current regulations do not mandate BESS owners to report safety incidents, which has led to a call for enhanced regulatory oversight.

As the landscape of energy storage continues to evolve, research into alternative energy storage technologies is likely to intensify, aiming to mitigate challenges faced by developers and alleviate community concerns surrounding BESS facilities.

Background Information and Cited Sources

• U.S. EIA Today in Energy report
• Federal Reserve Bank of Texas
• New York Gov. Kathy Hochul news release
• New York Climate Leadership and Community Protection Act
• Change.org petition against new BESS project
• Ninedotenergy news release
• CPUC General Order 167-C
• U.S. DOE news release
• U.S. DOE Loan Programs Office news release
• Businesswire news release

All views expressed by the author are solely the author’s current views and do not reflect the views of Concentric Energy Advisors, Inc., its affiliates, subsidiaries, related companies, or clients. The author’s views are based on information deemed reliable at the time of publication. However, neither Concentric Energy Advisors, Inc., nor its affiliates, subsidiaries, and related companies warrant the information’s completeness or accuracy, and it should not be relied upon as such.