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Arbitrage Dominates US Utility-Scale Battery Storage, Energy Vault's Large-Scale Projects Lead

Arbitrage is king in US utility-scale battery storage. Energy Vault's massive projects show the sector's growth and potential.

In the picture we can see a car engine with pipes, battery in it.
In the picture we can see a car engine with pipes, battery in it.

Arbitrage Dominates US Utility-Scale Battery Storage, Energy Vault's Large-Scale Projects Lead

Arbitrage has emerged as the dominant use case for utility-scale battery energy storage systems in the US. A significant 41% of total battery capacity is primarily dedicated to this purpose. By 2024, this trend is projected to continue, with 66% of all utility-scale battery capacity including arbitrage among its applications.

Energy Vault, a major player in this sector, has several large-scale projects underway. These include the St. Gall BESS in Texas, with a capacity of 100 MW/200 MWh, and the Reid Gardner BESS in Nevada, boasting 220 MW/440 MWh. The Stanton BESS, with a capacity of 68.8 MW/275.2 MWh, is another notable project, although its location remains unspecified. Additionally, the Cross Trails BESS in Snyder, Texas, has a capacity of 57 MW/114 MWh.

Frequency regulation, the second most common application, accounts for 24% of battery capacity. This indicates a balanced approach in the use of these energy storage systems.

Arbitrage's dominance in utility-scale battery energy storage systems in the US is clear, with a significant majority of capacity dedicated to this use case. Major players like Energy Vault are investing in large-scale projects to meet this demand. As the sector continues to grow, the balance between arbitrage and other applications, such as frequency regulation, will be an interesting trend to watch.

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