Battery Costs in Stationary Energy Could Fall by up to 66 Percent
Tokyo, Japan - The cost of battery storage for stationary applications could fall by up to 66 per cent by 2030. The falling price of batteries could stimulate 17-fold growth of installed battery storage, opening up a number of new commercial and economic opportunities. These are main results of a new report published by the International Renewable Energy Agency (IRENA).
The report, which is focused on stationary applications, highlights that while pumped-hydro systems currently dominate total installed power storage capacity, with 96% of the installed electricity storage power globally, economies of scale and technology breakthroughs will support the accelerated development and adoption of alternative storage technologies, such as lithium-ion (Li-ion) batteries and flow batteries.
Stationary electricity storage can directly drive rapid decarbonisation in other key segments of energy use, such as in the transport sector where the viability of battery storage for electric vehicles (EVs) is improving fast. At the end of 2016, the cost of Li-ion batteries had fallen by as much as 73 per cent for transport applications from 2010.
While Li-ion batteries in stationary applications have a higher installed cost than those used in EVs, in Germany, small-scale Li-ion battery systems have also seen their total installed costs fall by 60 per cent between the fourth quarter of 2014 and the second quarter of 2017.
According to the IRENA report, by 2030, the calendar life of Li-ion batteries could also increase by approximately 50 per cent, while the number of full cycles possible could potentially increase by as much as 90 per cent. Other battery storage technologies also offer large cost reduction potential. High temperature “sodium sulphur” batteries could see their costs decline by up to 60%, while the total installed cost of flow batteries could potentially fall by two-thirds by 2030. Although they are subject to higher up-front costs compared to other technologies, flow batteries often exceed 10,000 full cycles, balancing the costs with very high lifetime energy throughputs.
Source: IWR Online, 06 Oct 2017