Grid-scale energy storage is considered absolutely essential in stabilizing and regulating a clean energy supply grid due to the intermittency of wind and solar power. Wood Mackenzie has predicted that the grid-scale segment will be the main driver of the market from 2023-2027, accounting for 83% of the total installations.IRA Boost
The utility-scale energy storage sector has received a big shot in the arm from President Biden’s Inflation Reduction Act signed last year. The IRA has been hailed as the most significant climate legislation in U.S. history. It offers funding, programs, and incentives to accelerate the transition to a clean energy economy, with most of its provisions effective he most significant climate legislation in U.S.
The IRA has improved the outlook for both mobile and stationary storage markets and injected at least $63 billion in private- and public-sector investments into the battery storage sector since it came alive a year ago. Hardly surprisingly, energy storage companies and stocks are flying, with many outperforming the broad-market benchmark, , is the biggest beneficiary of battery production credits under the IRA. Tesla produces batteries with supplier in Nevada and is also ramping up output at its own Texas plant. The tax credits for battery manufacturing give Tesla a considerable competitive edge over rivals that make fewer batteries. TSLA has gained 123.9% in the year-to-date while Panasonic is up 40.