U.S. utility-scale energy storage is set to more than double, reaching nearly 65 GW by 2027, according to the U.S. Energy Information Administration (EIA). In its recently published Short Term Energy Outlook, the EIA forecasts significant growth in battery storage and a decline in gas-fired generation.
By the end of 2026, U.S. utility-scale battery storage capacity is expected to soar from 17 GW in the first quarter of 2024 to almost 65 GW. The EIA’s report highlights that domestic storage capacity will increase from approximately 28 GW at the end of Q1 2025 to 64.9 GW by the end of 2026, focusing on projects larger than 1 MW in the electric power sector. Additionally, large-scale battery storage in the commercial and industrial sectors is projected to grow from around 100 MW to about 300 MW during the same period.
The EIA’s data indicates that annual U.S. electricity generation will rise from 4,180 billion kWh in 2023 to 4,490 billion kWh in 2026. Electricity demand typically peaks during the summer months in the U.S. Despite a forecast for cooling degrees similar to last year’s weather, the EIA anticipates a 1% increase in total U.S. electricity generation this summer, equating to an additional 14 billion kWh compared to summer 2024.
The EIA expects robust demand growth in the commercial sector, driven by the expansion of data centers. However, it predicts that natural gas-fired power plants will generate 3% less electricity between June and September 2025 than they did the previous summer, citing higher natural gas prices and the ongoing rise in new solar generating capacity. Domestic solar generation is anticipated to increase by 33% this summer, and an improved water supply in the western states is expected to contribute to a 6% rise in U.S. hydroelectric generation.
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