Until recently, the adoption of battery power storage solutions in the U.S. had fallen short of expectations. Yet, declining costs and advancing technology suggests that battery storage is ready to play a larger role in the U.S. power sector. This potential is now attracting significant investor interest, and from 2024 onward, S&P Global Ratings expects total capital investment in North American battery storage to exceed $3 billion annually. With global installed capacity increasing at a 25% compound annual rate, growth in battery storage has been robust over the past five years. In the U.S., however, development has been slow. At the end of 2020, the U.S. had around 25 gigawatts of power in energy storage — 23 GW of which is pumped hydroelectric storage. This is minimal relative to the renewables already on the grid.