U.S. grid-scale energy storage installations dropped in the first quarter of 2023 due to supply chain issues and interconnection queue backlogs, a report by the American Clean Power Association (ACP) and Wood Mackenzie said.

Installations of grid-scale energy storage, which helps regulate energy supply when the sun is not shining or wind not blowing, accounted for more than 70% of new installed capacity.

“This is the first consecutive quarterly decline we have seen in the energy storage market since 2015 when installations were much smaller in volume and more unpredictable,” Vanessa Witte, senior analyst in Wood Mackenzie’s energy storage team, said in the report.

The grid-scale segment installed 1,553 megawatt hours (MWh) in the quarter, down 33% on the first quarter of 2022, while overall, the U.S. energy storage market added 2,145 MWh in the first quarter of 2023, down 26% from the fourth quarter of 2022.

“We are seeing the effects of supply chain issues and interconnection queue backlogs hinder market growth,” Witte said.

Despite the slowdown, Wood Mackenzie still sees total additions for all segments doubling in 2023 from 2022.

Community, commercial, and industrial installations saw their second-highest quarter on record, up 145% from last year.

Residential storage also had its second-highest quarter, but was still lower than the prior quarter, the report said.