Delayed or cancelled shipments of project components, travel restrictions on personnel and ceasing direct customer contact are causing energy storage projects to be delayed, according to a survey by Energy Storage Association (ESA).
Around a third of respondents to the association’s poll earlier this month have experienced delays in delivering energy storage projects because of the coronavirus.
The online survey of ESA members revealed 62% of the 175 respondents are experiencing delays in project deployment, while 66% expect to incur delays soon.
Of the respondents, 44% are experiencing short-term (one month) impacts and 37% are anticipating six-month or longer delays in project deployment.
Many respondents didn’t know what the length their delays might be.
An ESA statement said that several challenges were driving concerns, including: delayed or cancelled shipments of project components; travel restrictions on personnel that hinders project site visits; ceasing direct customer contact, and other dependencies such as closed government permitting agencies.
Further ahead, there is concern economic uncertainty will “substantially reduce” the behind the meter (retail-facing) market.
ESA’s five-point plan includes:
- Modify energy investment tax credits (ITC) to allow businesses to monetize them directly, including for energy storage technologies.
- Grant an industry-wide exclusion from Sec. 301 tariffs on grid energy storage projects and their components (see USTR Exclusion Request ID USTR-2019-0017-48999).
- Provide grants for distributed energy resources, including energy storage, for resilience and cost-savings.
- Direct the Department of Energy (DOE) to undertake demonstration projects of energy storage across electric systems.
- Incorporate energy storage into immediate relevant funds to state, local governments, and communities and expand those funds.
It leaves predictions that the US’ energy storage will grow to 7.3GW ($7.2 billion) by 2025 in doubt, and industry analysts Wood Mackenzie is expected to adjust its prediction.