US energy storage installations will quadruple by 2031, Wood Mackenzie forecasts

energy-storage.news Jun 24, 2026

US energy storage installations will quadruple by 2031, Wood Mackenzie forecasts

Curated by Shubham · TechCapsules · Jun 24, 2026

AI-summarised brief · reviewed before publication

US energy storage installations are expected to quadruple by 2031, according to a report by Wood Mackenzie. The market research firm predicts that the US energy storage market will reach 200GW/655GWh of cumulative installed energy storage capacity by 2031. In Q1 2026, 3.3GW/8.4GWh of energy storage was installed, with all segments posting record Q1 installation numbers. Utility-scale sector deployments led the way, with Texas, California, and Arizona leading the charge.

💡 Why It Matters

· The rapid growth of the US energy storage market could help address rising electricity demand and compensate for thermal generation retirements, positioning the country to meet its renewable energy integration goals.
· As domestic battery cell manufacturing scales up, the segment is poised to play a crucial role in supporting the transition to a cleaner energy mix.

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NatPower, Tesla sign 25GWh Megapack supply and execution agreement for Italy and…

NatPower and Tesla have signed a multi-year agreement to supply over 25GWh of battery energy storage systems (BESS) across Italy and the UK. The deal covers five initial projects, with Tesla providing its Megapack battery storage systems, engineering, procurement, and construction services, and bankable trading services. The agreement is valued at an estimated US$4-5 billion, with projected revenues exceeding US$15 billion over 20 years. This is one of the largest single BESS procurement contracts announced in the European market.

💡 The NatPower-Tesla agreement marks a significant shift in the battery storage deployment landscape, addressing a structural problem in infrastructure delivery. By bundling hardware with software and coordinating procurement, financing, and execution across multiple jurisdictions, the companies have created an integrated framework that can be replicated across multiple markets, potentially changing the dynamics of the industry.

spacenews.com · Jun 24

How space weather could bust the AI boom

America's electric grid is facing unprecedented strain due to the rapid expansion of power-hungry AI data centers. Utilities are struggling to keep up, and the increasing energy demand is causing consumer electric bills to rise. A lesser-discussed risk is the vulnerability of the grid to space weather, which could cripple portions of the grid by damaging high-voltage transformers. Scientists have warned of the potential consequences of a severe solar storm, and investment in space weather forecasting and preparedness has been inadequate.

💡 The tech giants behind the AI revolution must prioritize space weather forecasting and preparedness to protect the electric grid and AI systems critical to national security and society. By articulating the importance of space weather forecasting to lawmakers and investing in grid resilience, they can mitigate the risks of catastrophic damage from severe solar storms.

cleantechnica.com · Jun 24

Geopolitics Smooths The Energy Transition Curve

The global energy transition is not driven by a single country's curve, but rather the aggregation of many jagged national pathways. Countries stall, surge, obstruct, and make short-term decisions, but they also build infrastructure, deploy clean technologies, and improve manufacturing capacity. The transition is increasingly driven by competition, resilience, energy security, affordability, and industrial policy. The United States, China, and Europe are key players, but their policies and actions do not dictate the global transition. Instead, the curve is shaped by the interactions of many countries, each with their own incentives and priorities.

💡 A single-country view of the energy transition is dangerous, as it can lead to misreading the global climate. The rest of the world does not wait for Washington to become sensible, and other countries continue to build clean infrastructure and deploy technologies, even if the US is moving backward.

energy-storage.news · Jun 24

Dominion Energy launches long-duration energy storage RFI in Virginia

Dominion Energy Virginia has issued a request for information on long-duration energy storage technologies for a pilot program with an expected capacity of at least 4,000MWh. The program aims to explore LDES options, generate economic benefits, and create local jobs. Virginia legislation promotes new energy storage investments, with Dominion required to add 16,000MW of short-duration and 3,480MW of LDES capacity by 2045. The RFI seeks comprehensive information on LDES technologies, including technical specifications and commercial readiness. Companies have six weeks to submit responses. The program will help meet increasing energy demand driven by data centers.

💡 Dominion Energy's exploration of long-duration energy storage technologies could help stabilize the grid amidst growing demand from data centers. Virginia's legislation and investment in energy storage will support the state's economic growth and energy reliability.

cleantechnica.com · Jun 24

California Preps For Battle Royale Over Offshore Wind Leases That Trump Wants…

California is preparing to battle the Trump administration over offshore wind leases. The state intends to sue the US Department of the Interior for allegedly making an illegal agreement with Golden State Wind, a joint venture between Offshore Wind and Reventus Power. The agreement involves a $120 million payout to abandon plans for a 2-gigawatt wind farm off California's coast. This comes after the Trump administration issued a blanket ban on new offshore leases and halted existing projects. California's action follows similar suits by New York and six other states. The state's offshore wind plans rely on floating wind turbines.

💡 California's lawsuit challenges the Trump administration's authority to unilaterally cancel offshore wind projects, potentially paving the way for other states to assert their rights to develop renewable energy resources. By taking on the administration, California is defending its own economic and environmental interests.

energy-storage.news · Jun 24

REV Renewables and LS Power commission California’s first 8-hour duration lithium-ion BESS

REV Renewables and LS Power have commissioned California's first 8-hour duration lithium-ion battery energy storage system (BESS) in Kern County. The Tumbleweed Energy Storage facility was developed in partnership with California community choice aggregators (CCAs) and was brought online ahead of the California Public Utilities Commission's (CPUC) requirements. The system's capacity was not disclosed, but it is part of a larger project with a final expansion totaling 125MW/1,000MWh. The project satisfies 55% of the Mid-Term Reliability requirement for eight-hour minimum storage procurement.

💡 The Tumbleweed project's success highlights the growing demand for long-duration energy storage (LDES) in California, driven by the state's ambitious renewable energy goals. As the global average storage duration expands to meet net zero scenarios, emerging LDES technologies will face significant challenges in achieving cost reductions comparable to lithium-ion's dramatic declines over the past decade.