With the new year now in its first full week, it’s time to reflect on the year that just ended. Battery energy storage continued its rapid growth trajectory and with it Intelligent Generation experienced another very successful year. Nationally, a record 9.2 GW of battery storage was added, driven by the ability of batteries to balance and stabilize the grid to support increasing renewable generation, increasing load, and volatile weather-caused stresses. IG showed strong growth in contracted battery capacity and in our deal pipeline.
At Intelligent Generation, we witnessed firsthand the transformative power of battery storage in 2024. Our customers reaped substantial financial rewards, with some projects creating value over $200,000 per megawatt of battery capacity in savings and revenue. This tangible demonstration of value underscores the growing economic imperative for businesses to embrace battery storage solutions.
Intelligent Generation continued to lead the charge in 2024, forging strategic partnerships with leading EPCs and project developers, and securing Master Services Agreements with influential commercial real estate companies committed to sustainability. We significantly expanded our Virtual Power Plant and project pipeline, positioning ourselves for another year of unprecedented growth in 2025.
The year 2024 cast a long shadow across the electric landscape, one that was both ominous and illuminating. Ominous, as the specter of rising electricity costs loomed large, with the PJM auction for 2025-2026 generation capacity shattering records and signaling a fundamental shift in the market. Illuminating, as this very shift underscored the critical role of battery storage in navigating the complexities of a rapidly evolving energy future.
Strategic discharge of batteries located at customer facilities can relieve the grid of load during peak hours, saving customers significant cost on their electricity bills, especially with peak-related capacity and transmission charges rising substantially. IG’s patented software proved again it can accurately predict when peaks will occur and this summer dispatched its customers’ batteries during all 5 Coincident Peaks for both capacity and transmission.
The confluence of factors – dwindling power plant capacity, surging electricity demand, and the inexorable march of climate change – painted a portrait of an energy grid under increasing strain. This perfect storm threatens to leave businesses and consumers vulnerable to volatile energy prices and potential disruptions.
Yet, within this challenging landscape, a beacon of opportunity shines: battery storage. No longer a nascent technology, battery storage has matured into a powerful tool for businesses seeking to safeguard their bottom line, enhance their energy resilience, and contribute to a more sustainable energy future.
Beyond the immediate financial benefits, 2024 also witnessed a burgeoning wave of state-level support for battery storage. In New Jersey, utility regulators issued their long-awaited updated Storage Incentive Program proposal for public comment. The plan covers the implementation of a state law calling for deployment of a 3,000 MW of storage in the state by 2030. Implementation is expected to begin later in 2025. While in Illinois, a limited storage Bill is set for a vote in early January 2025 that will set an initial storage target while directing state agencies to study implementation. Illinois has a commitment to eliminate most fossil power generation in the state by 2035 and needs additional battery storage as well as more renewable generation to carry the load in the future. The new General Assembly may consider additional legislation to create new programs to further enable the benefits of energy storage.
As we embark on this new chapter, it is clear that battery storage is no longer a niche technology, but rather a cornerstone of a resilient and sustainable energy future. The challenges we face in the years to come are significant, but with innovative solutions like battery storage, we can navigate these challenges and usher in a new era of energy abundance and prosperity.