SUMMARYFalling battery prices and rising electricity demand have driven a surge of grid-scale storage projects across the United States, but utility interconnection delays and equipment shortages are slowing deployments. Lawrence Berkeley National Laboratory estimates about 750 gigawatts of storage projects are waiting for grid connections, with median wait times rising to five years in 2025 from 18 months in 2015. Utilities in New York and California are facing long lead times for breakers and other upgrades, while Con Edison’s new cost-sharing policy has raised project expenses and contributed to cancellations.
Falling prices have made grid-scale storage batteries more attractive, reports Bloomberg. But after decades of stagnant investment, America's grids "are racing to make the upgrades needed to plug them in," with supplies straining for the necessary equipment.
Demand for batteries has skyrocketed as electricity use across the U.S. swells, driven by data centers' booming energy needs and increasing electrification. It's also getting harder to get them connected to power grids... As those upgrades get delayed, storage projects are piling up in interconnection queues from coast to coast. For example, Consolidated Edison Inc., a major utility in New York state, says over the last two years the volume of battery storage projects waiting to be connected has grown by 300%... "The whole process of interconnecting these new power plants got really log-jammed and bottlenecked," said Joseph Rand, an energy policy researcher at the Lawrence Berkeley National Laboratory...
Nationwide, some 750 gigawatts of energy storage projects - roughly equivalent to the generating capacity of more than 700 nuclear reactors - are in line to get grid connections, according to the lab's research. Not all of these projects will get built. Many developers already abandoned the queue because of delays. Still, the waiting time is increasing; the median was five years in 2025, up from a year and a half in 2015. The flood of battery projects is expected to continue. Wood Mackenzie, an energy consultancy, projects the U.S. energy storage market will quadruple in the next six years...
[Shortages in key equipment] have driven up construction costs and time lines for grid upgrades, leaving utilities struggling to build fast enough. A drought of skilled workers is further slowing them down... In California, PG&E Corp., the state's largest utility, told regulators in January that a key driver of delays was long lead times for specialized equipment. Procuring certain breakers could take nearly four years, according to the utility, which reported a 300% increase in its interconnection workload compared to prior years. In Northern California, for example, holdups to circuit breaker upgrades to a substation in Solano County led to projected delays for two battery projects worth a combined 450 megawatts. Transmission line work in the Bay Area has put another 800 megawatts of energy storage at risk of delay, according to PG&E.
Last year New York's Con Ed started requiring developers to help pay for upgrades if their projects will push power demand and strain infrastructure. But that also drew criticism:
According to a survey conducted by the trade group New York Battery and Energy Storage Technology Consortium (NY-BEST), the new methodology raised costs by an average of $21 million per project, a 14-fold increase. At least 25 projects have been canceled as a result, according to the group. Battery advocates have appealed to state regulators to get Con Ed to abandon the new policy.
Thanks to Slashdot reader Bruce66423 for sharing the news.