Utility-Scale Battery Storage Growing Rapidly

Utility-scale battery storage capacity is becoming a bigger part of the U.S. energy mix with capacity set to double over the next two years, a recent report found.

The Short-Term Energy Outlook, published by the U.S. Energy Information Administration, forecast that storage projects larger than 1 megawatt (MW) of capacity will increase sharply, from about 28 gigawatts (GW) in March 2025 to almost 65 GW by the end of 2026.

Long-duration battery storage technology is rapidly improving and becoming viable commercially. Battery storage can help to balance supply and demand while providing clean, renewable power. It allows renewable energy sources, primarily solar installations, to store excess electricity when it is being produced and discharge it during peak periods of demand. It also enables operators to store power when wholesale prices are low and discharge it to the grid when prices are higher, boosting profits.

The EIA also found that monthly storage capacity averaged 70% growth over the last three years. At the end of 2025, the U.S had 43.6 GW of capacity, with an additional 8.3 GW added during the first half of this year. Operators plan to bring another 14 GW online by the end of 2026,  and another 27 GW in 2027.

Several companies in the tri-state region are ramping up commercial production of utility-scale battery storage. Eos Energy Solutions, based in Pittsburgh, is manufacturing zinc-powered storage systems, and Form Energy is manufacturing its iron-air long-duration storage systems in Weirton, W.Va.

The increasing use of battery storage is also happening globally. The International Energy Agency recently reported that battery storage capacity expanded strongly in 2025, with total capacity additions reaching 108 GW, up around 40% from 2024. Annual growth of this scale exceeds the historical peak for gas‑fired power capacity additions, which was around 107 GW in 2002.

The IEA attributes this to falling costs, greater flexibility, and short deployment timelines for utility-scale systems. The agency said that in many markets, “projects typically take around two years to develop and commission, giving them an important advantage in systems that seek flexible capacity quickly.”

The IEA predicts that battery storage deployment is on track to continue accelerating, but notes that several potential barriers, including regulatory uncertainty and delays in grid connection and permitting, will be determine just how fast that growth continues.