Storage to Keep on Growing
The global market for energy storage is set to increase in size by six times by 2030, Bloomberg New Energy Finance (BNEF) have predicted, with over two thirds of the capacity expected to be concentrate in eight key countries.
The market is anticipated to see a similar growth pattern equal to that experienced by the solar industry, where PV generation multiplied seven times between 2000 and 2015. By 2030, a total of 125GW / 305 GWh is expected to have been installed at a global level, one fourth of it in the US alone. China, Japan, India, Germany, the UK, Australia and South Korea will along with the US, altogether capture an estimated 70% of the market.
Between 2016 and 2030, investments in energy storage are forecast to reach US$103 billion, and the technology will provide valuable flexibility at both large-scale and behind-the-meter levels as renewables provide an increasing share of total energy generation in accordance with Paris Agreement goals.
The International Renewable Energy Agency (IRENA) has stated that battery electricity storage technology is vital to the world’s transition to a sustainable energy system, and has also predicted that its costs will fall between 50% and 66% by 2030 due to optimised manufacturing facilities, better combinations and lower use of materials.
An example of this can be seen in Germany, where the costs of small-scale household Li-ion batteries have fallen by more than 60% in the last three years.
IRENA suggests that by 2030 Lithium-ion battery costs could drop to under US$200 per KWh for installed systems. With this reduction in cost renewable energy becomes a more viable and competitive option.