US utility-scale energy storage to double, reach 65 GW by 2027: EIA

AI generated summary

The U.S. Energy Information Administration (EIA) has projected a significant increase in utility-scale battery storage, forecasting that capacity will more than double to nearly 65 GW by the end of 2026, up from 17 GW in early 2024. This growth is part of the EIA's Short Term Energy Outlook, which highlights a rise in domestic storage capacity from approximately 28 GW at the end of Q1 2025 to 64.9 GW by the end of 2026. Additionally, large-scale battery resources in the commercial and industrial sectors are expected to increase from 100 MW to 300 MW during the same period.

In terms of electricity generation, the EIA anticipates an increase from 4,180 billion kWh in 2023 to 4,490 billion kWh by 2026. The agency expects a 1% rise in total U.S. electricity generation this summer compared to the previous year, driven by strong demand growth in the commercial sector, particularly due to the expansion of data centers. However, natural gas-fired power plants are projected to generate 3% less electricity this summer due to higher gas prices and the ongoing growth of solar energy capacity, which is expected to increase domestic solar generation by 33% this summer.