Battery energy storage system (BESS) deployment in the United States is accelerating as rising power demand, including from data centres, drives the need for flexible capacity and grid support.
Utility scale battery storage capacity surpassed 26 GW in 2024 and continues to grow strongly, with BESS now forming a significant share of interconnection queues.
Our new briefing, Future of Battery Energy Storage Systems (BESS) U.S., provides a concise guide to the evolving opportunity set and risk landscape for U.S. BESS projects, including:
Revenue opportunities
- How BESS projects generate value across energy, ancillary services and capacity markets
- The role of longer term structures such as tolling arrangements and customer offtake
Regional market differences
- The impact of market design and resource adequacy regimes on project returns
- Interconnection processes and transmission charging rules that affect timelines and economics
Tax and policy developments
- The standalone investment tax credit (ITC) for BESS following the Inflation Reduction Act of 2022 and the One Big Beautiful Bill Act (OBBB Act)
- New foreign ownership and supply chain restrictions from 2026, including “prohibited foreign entities”, equipment sourcing thresholds, safe harbour options and the push for domestic manufacturing
With strong demand but growing complexity around revenues, grid access and ITC compliance, the briefing offers practical insights for planning, structuring and financing U.S. BESS projects.
