Battery Scarcity Stops The US Transition To Clean Energy
In recent months, US renewable energy producers have postponed or abandoned numerous large battery projects aimed at storing electrical power on the grid, putting an end to efforts to replace fossil fuels with wind and solar energy.
As labor and transportation constraints, skyrocketing mineral prices, and rivalry from the electric car sector limit supply, at least a dozen storage projects planned to support growing renewable energy sources have been postponed, abandoned, or renegotiated. One previously unknown argument over a long-delayed California storage facility went to court. As the Biden administration aims to decarbonize the grid by 2035, the delay in utility-scale battery deployments affects the pace of the US moves away from fossil fuels. Power reliability in states that already rely significantly on renewable energy might be jeopardized because of the delays.
Increasing Power Shortage
Power storage is important for the spread of solar and wind energy because it permits electricity generated while the sun is shining, or the wind is blowing to be used later in the day when customers are most in need. According to an examination of regulatory records, company comments, and interviews with project developers and power suppliers, the delays cover states such as California, Hawaii, and Georgia, with battery providers like Tesla and Fluence warning of supply problems. The delays, some of which have not been previously publicized, vary from several months to a year.
“I have never seen a young business challenged on so many fronts,” said Jamal Burki, president of IHI Terrasun Solutions, IHI Corp.’s U.S. energy storage division.
European energy storage projects are also experiencing delays, but because Europe trails behind the United States in terms of grid-scale storage, the problem is less severe. Ben Guest, fund manager of Gresham House Energy Storage Fund, which invests in battery projects in the United Kingdom, stated that project delays have ranged from two to three months, owing to component shortages and shipping issues. Energy storage accounts for 3% of operating clean energy capacity in the United States and is quickly expanding. According to the American Clean Power Association, installations increased by 170 percent in the first quarter to 758 megawatts, or nearly enough capacity to power 144,000 households.
