2023 was a banner year for battery storage, particularly in Illinois and across the PJM Interconnection. As awareness and education around energy storage continues to surge, Intelligent Generation (IG) experienced phenomenal growth, more than doubling
its installed battery base and witnessing a staggering fivefold increase in its project pipeline compared to the previous year. This positions IG for even more rapid expansion in 2024 and beyond.
Customers Reap the Rewards:
IG’s dedication to customer success translated into significant savings and earnings in 2023. Customers saved and earned over $250,000 per MW of installed battery capacity, achieved through strategic discharging during peak grid events, when charges for capacity and transmission soar.
IG also capitalized on wholesale grid services markets, dispatching customer batteries to provide ancillary services crucial for grid stability and resilience. While the overall value of these services dipped in 2023 due to lower energy prices compared to 2022, their importance in maintaining reliable electricity during extreme weather events cannot be overstated. Fortunately, calmer weather conditions in the Midwest and Mid-Atlantic regions meant fewer grid stress events in 2023.
Inflation Reduction Act: Unlocking New Opportunities:
The release of guidance by the U.S. Treasury Department and Department of Energy regarding the implementation of the Inflation Reduction Act (IRA) was a game-changer for IG’s business customers. The guidance outlines how to qualify for significant benefits, including:
- Investment Tax Credits and Direct Payments: 30% or more of project installation costs for solar and energy storage can be covered through investment tax credits or, for non-taxable entities, direct payments.
- Incentives for Domestic Components:
Additional tax credits are available for projects using U.S.-manufactured solar panels and batteries. This has spurred announcements of over 100 new manufacturing plants for renewable and battery equipment in the U.S. that will begin to deliver products in the coming years while creating 42,000 American jobs. - Designated Energy Communities: A map was published identifying the specific geographical areas that qualify for enhanced tax credits. This incentive directs clean power investment into communities that have suffered the most impact from the transition from fossil fuels to clean energy.
These provisions make energy storage projects even more financially attractive, paving the way for even greater adoption in the years to come.
Industry Outlook: A Bright Future for Battery Storage:
Per the U.S. Energy Information Administration, the year 2023 witnessed a nationwide addition of an estimated 9.6 gigawatts of new battery storage capacity, further solidifying its critical role in the clean energy transition. With continued policy support, technological advancements, and increasing awareness of its benefits, the future of battery storage appears incredibly bright.
Intelligent Generation at the Forefront:
IG is at the forefront of this exciting revolution, leading the charge with its innovative solutions, strategic partnerships, and unwavering commitment to customer success. As the industry continues to soar, IG is poised to play an even more pivotal role in shaping a sustainable and resilient energy future.
Call to Action:
Ready to unlock the power of battery storage for your business? Contact Intelligent Generation today and discover how our expertise can help you achieve your energy goals and reap the financial rewards of this rapidly growing market.