The cost of battery storage for stationary applications is estimated to fall by up to 66%, which will stimulate the growth of installed battery storage by 17-fold, a report by International Renewable Energy Agency (IRENA) stated.
The report titled ‘Electricity Storage and Renewables: Costs and Markets to 2030’ was launched at the ‘Innovation for Cool Earth Forum’ in Tokyo, Japan. As per the report, falling costs and the growth of installed battery storage is expected to open up new economic and commercial opportunities.
IRENA noted that if countries can double their share of renewable in their respective energy mixes, then global battery storage capacity could triple. As per the report, presently pumped-hydro systems dominate the total installed power storage capacity with over 96% of installed electricity storage.
Economies of scale and breakthroughs in technology could help in speeding up the development and adaption of alternative storage solutions such as lithium-ion (Li-ion) batteries and flow batteries, the agency added.
IRENA director-general Adnan Z. Amin said: “As storage technology improves and prices decline, both utility-scale and small-scale, distributed applications could grow dramatically, accelerating renewable energy deployment. In this dynamic, low-carbon energy environment, now is a crucial time for storage technology
“This research demonstrates that the business case for renewable energy continues to strengthen, positioning it firmly as a low-cost and secure source of energy supply.”
The report claims that stationary electricity storage can help in accelerating decarbonisation in other key segments of energy use such as transport sector where battery storage viability for electric vehicles is also improving.
According to IRENA’s estimate, the cost of Li-ion batteries have fallen as much as 73% in the transport sector compared to 2010.
IRENA Innovation and Technology Centre director and an author of the report, Dolf Gielen said: “The growth of lithium-ion battery use in electric vehicles and across the transport sector over the next 10 to 15 years is an important synergy that will help drive down battery costs for stationary storage applications.
“The trend towards electrified mobility will also open up opportunities for electric vehicles to provide vehicle-to-grid services, helping feed a virtuous circle of renewable energy and storage integration.
“Storage technology will deliver service flexibility to the grid and electricity storage to small-scale rooftop solar applications in markets where commercial and residential electricity rates are high, and grid feed-in remuneration is declining.”
As per IRENA’s estimate, by 2030, the life of Li-ion batteries could increase by about 50% and the number full cycles possible could also increase by as much as 90%.
The cost of other storage technologies such as high temperature ‘sodium sulphur’ batteries could also drop by up to 60%, while the total installed cost of flow batteries could fall by two-thirds by the forecast period.
Even with higher up-front costs compared to other technologies, flow batteries can often exceed 10,000 full cycles, balancing costs with high lifetime energy throughputs.
