The U.S. Energy Information Administration (EIA) recently released its Short Term Energy Outlook, predicting significant growth in utility-scale energy storage across the nation. By the end of 2026, the capacity for battery storage in the U.S. is expected to reach nearly 65 GW, a dramatic increase from 17 GW in the first quarter of 2024.
According to the EIA’s report, which focuses on projects exceeding 1 MW within the electric power sector, domestic storage capacity is projected to rise from approximately 28 GW at the end of Q1 2025 to 64.9 GW by the close of 2026. Additionally, large-scale battery storage in the commercial and industrial sectors is anticipated to grow from around 100 MW to 300 MW during the same period.
The EIA also forecasts an increase in annual U.S. electricity generation, projecting a rise from 4,180 billion kWh in 2023 to 4,490 billion kWh by 2026. Although electricity demand peaks during the summer months, the EIA expects total U.S. electricity generation this summer to increase by 1%, or 14 billion kWh, compared to summer 2024, despite forecasts indicating similar cooling degree days to last year.
The report highlights strong growth in electricity demand within the commercial sector, primarily driven by the expansion of data centers. Additionally, the EIA anticipates that natural gas-fired power plants will generate 3% less electricity between June and September 2025, primarily due to rising natural gas prices and the continuous growth of solar energy capacity. The EIA expects domestic solar generation to rise by 33% this summer, while improvements in water supply in the western states are projected to contribute to a 6% increase in U.S. hydroelectric generation.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/us-utility-scale-energy-storage-capacity-expected-to-reach-65-gw-by-2027-eia-reports/
