The document summarizes the state of energy storage in the United States. It finds that electrical energy storage installations are growing significantly year-over-year, reaching 459 MWh in 2016 and an estimated 696 MWh in 2017. By 2027, installations are projected to reach 17.4 GWh annually. Utility applications are expected to be the primary driver of energy storage growth through 2027. Additionally, the document finds that energy storage is beginning to compete with natural gas peaker plants on cost within 4 years and will consistently undercut peakers' costs within 10 years, putting a large portion of planned gas peaker capacity at risk of displacement by energy storage technologies.

1. 0Kann - State of Storage - ESS 2017
GTM Energy Storage Summit 2017
Shayle Kann & Stephen Lacey
The Interchange…Live!

2. 1Kann - State of Storage - ESS 2017
128 158
74
112
257
426
0
100
200
300
400
500
600
700
800
2016 2017
The State of U.S. Energy Storage
2017 Estimated U.S. Electrical Energy Storage Installations (MWh)
Source: GTM Research
459
696

3. 2Kann - State of Storage - ESS 2017
128 158
74
112
257
426
0
100
200
300
400
500
600
700
800
The State of U.S. Energy Storage
2017 Estimated U.S. Electrical Energy Storage Installations (MWh)
Source: GTM Research
Residential Non-Residential Utility
459
715

4. 3Kann - State of Storage - ESS 2017
Getting To The Next Order Of Magnitude – 17.4 GWh in 2027
Compound Annual Growth Rate (CAGR), 2017-2027 – PRIMARY APPLICATION
Source: GTM Research
Residential Non-Residential Utility
2% 2%
62% 59%
53%
38%
54% 52%
16%
39%
30%
40% 38%
0%
10%
20%
30%
40%
50%
60%
70%

5. 4Kann - State of Storage - ESS 2017
The Momentum Builds: Energy Storage in Integrated Resource Plans
AZ
CO
FL
NC
VA
WV
MW in Resource Plan

Specific Storage
Capacity
 “As Much As…”
 TBD
Storage Modeled, Eligible or Mandated in Utility IRPs (MW)
WA
SC
IN
KY
MA
CA
OR
NM
Estimated Total Opportunity:
5.1 GW, 16.8 GWh

6. 5Kann - State of Storage - ESS 2017
20 GW of Gas Peakers Planned In The Next Decade
Estimated New Gas Peaking Capacity, 2018-2027 (MW) Gas Peaking Capacity By Time Range
-
1,000
2,000
3,000
4,000
5,000
6,000
How Much Might Storage Displace?
2018-
2022
7,440
2023-
2027
12,645
75% In Top Ten States

7. 6Kann - State of Storage - ESS 2017
Natural Gas Peakers At Risk
Base Case Levelized Cost of Energy – Peaking Gas Combustion Turbine vs. 4hr Li-ion Battery Storage ($/MWh)
$0
$20
$40
$60
$80
$100
$120
$140
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Gas CT
4hr Battery Storage
Within Four Years,
Storage Begins To
Compete Head-to-Head
Within Ten Years,
Storage Always Wins

8. 7Kann - State of Storage - ESS 2017
Natural Gas Peakers At Risk
Estimated Peaking Capacity With Storage<Gas LCOE, 2018-2027
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
Base Case
Accelerated
4-hr Li-ion Storage System Capital Cost ($/kW)
931
6,610
9,799
33%
49%
0%
10%
20%
30%
40%
50%
60%
0
2,000
4,000
6,000
8,000
10,000
12,000
Current
Cumulative
On-Grid
Storage (MW)
Peaker
Displacement
Estimate, Base
Case
Peaker
Displacement
Estimate,
Accelerated
Share of Peakers Displaced
Peaker Displacement Opportunity, 2018-2027 (MW)

9. 8Kann - State of Storage - ESS 2017
What Else?
•The storage land grab continues
•What unintended consequences should the storage industry avoid?
•The uncertain future: does storage need renewables growth to
survive?
•Predictions for 2018