The U.S. grid-scale energy storage installations hit a new record in the second quarter of 2023, a report by Wood Mackenzie and the American Clean Power Association (ACP) said.

Grid-scale energy storage is essential in helping balance and regulate energy supply in a grid that is increasingly reliant on intermittent wind and solar power.

"The energy storage market is on pace for a record year, as utilities and larger power users increasingly turn to storage to enhance the grid and improve reliability," said ACP VP of Research and Analytics, John Hensley.

Across all segments of the industry, the U.S. energy storage market added 5,597 megawatt hours (MWh) in the second quarter this year, a new quarterly record. The grid-scale segment registered 172% growth quarter-over-quarter, surpassing the previous record set in the last quarter of 2021.

California dominated the activity, as it accounted for 49% of the installed capacity, with 738 megawatts (MW).

"We saw a huge bounce back in Q2 after consecutive quarterly declines in the market," said Vanessa Witte, senior analyst with Wood Mackenzie’s energy storage team.

"Many projects delayed from prior quarters, largely due to supply chain issues, were able to come to fruition this past quarter."

Wood Mackenzie expects the grid-scale segment to be the main driver of the market in its five-year forecast from 2023-2027, accounting for 83% of the total installations.

Meanwhile, community, commercial, and industrial (CCI) installations were at 107 MWh in the second quarter, according to the report. This was higher than any quarter in 2022 but 53% lower than the previous quarter.

Residential storage recorded its second-straight quarter of declines at 381.2 MWh, the report said.