A 2025 Update on Utility-Scale Energy Storage Procurements
While the energy storage market continues to rapidly expand, fueled by record-low battery costs and robust policy support, challenges still loom on the horizon—tariffs, shifting
Energy storage procurement contracts must also take into account the ever-evolving suite of laws and regulations applicable to energy storage projects, including as a result of the recent change in administration in the United States.
Recent contracts are predominantly for much larger transmission-connected energy storage projects. Earlier energy storage contracts were significantly more expensive across all grid domains, and they generally reflect the cost reductions seen in the global storage industry.
The PU's Energy Storage Procurement Framework provides crucial motivation to the development of both demand and supply in this marketplace. Since the time of Assembly Bill 2514 and through 2021 California built a rich ecosystem for energy storage research and development, commercialization, and project deployment.
In 2018, the New York Public Service Commission (NY PSC) identified high soft costs as a major barrier for energy storage deployment in their state. The CPUC Energy Storage Procurement Study aims to address similar challenges in California.
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