June 9 (Reuters) – U.S. renewable energy developers have delayed or scrapped several big battery projects meant to store electrical power on the grid in recent months, scuttling plans to replace fossil fuels with wind and solar energy.
At least a dozen storage projects meant to support growing renewable energy supplies have been postponed, canceled or renegotiated as labor and transport bottlenecks, soaring minerals prices, and competition from the electric vehicle industry crimp supply.
One previously unreported dispute over a delayed California storage project has even wound up in court.
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The slowdown in utility-scale battery installations threatens the pace of the U.S. transition away from fossil fuels as the Biden administration seeks to decarbonize the grid by 2035. The delays could pose a threat to power reliability in states that already depend heavily on renewable energy like California.
Storing power is considered vital to the expansion of solar and wind energy because it allows electricity generated when the sun is shining or wind is blowing to be used at the end of the day when consumers need it most.
The delays span states including California, Hawaii and Georgia, with battery providers including Tesla (TSLA.O) and Fluence (FLC.AX) warning of disruptions to supply, according to a review of regulatory documents, corporate statements and interviews with project developers and power providers.
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