ESS installation costs set to fall by at least 50% by 2030

Published on: October 26, 2017 5:39 amBy: Jade Beevor

 

Michael Taylor, senior analyst, renewable energy, IRENA,

The installed costs for stationary battery energy storage systems will fall by more than 50% across the different chemistries and technologies by 2030, according to a report published on October 6 by the International Renewable Energy Agency.

While 96% of global installed stationary power storage capacity will continue to come from pumped-hydro systems, economies of scale and technology breakthroughs should see the accelerated development and adoption of alternative storage technologies, such as lithium ion and flow batteries.

The finding were published in IRENA’s Electricity Storage and Renewables: Costs and Markets to 2030, which was launched during the ‘Innovation for Cool Earth Forum’ in Tokyo, Japan, which ran between October 4-5.

Michael Taylor, senior analyst, renewable energy cost status and outlook at IRENA, told ESJB: “We see lower installation costs and decarbonization of energy as interlinked.

“They are both likely to contribute to deployment growth. Due to recent, sometimes rapid, cost reductions for renewable power generation, low-cost storage systems can be an enabler for the efficient management of high shares of variable renewable electricity in the systems (noting that they are competing with other options to do this).

“However, at the same time as battery deployment starts to increase, best practice and operational experience may unlock synergies for continued cost reductions that will in turn open up new business opportunities for battery electricity storage technologies that may not have been plausible in the past.”

Installations costs of vanadium redox flow battery systems were forecast to decrease the most, around 66%, from $347/kWh in 2016 to $119/kWh by 2030.

For lead-acid, installation costs by 2030 are expected to halve from its 2016 numbers. The decreased costs for lithium-ion systems will vary depending on the chemistry (between 54% for LTO [estimates in 2016 range between $473/kWh and $1,260/kWh] and up to 61% for LFP systems),

Compressed air energy storage is set to fall from $53/kWh for a typical project in 2016 to $44/kWh by 2030. Installation costs for flywheel systems should decline to between $1,000/kWh and $3,900/kWh by 2030 as cycle and calendar lifetimes improve.

Taylor says lithium and other non-lead chemistries were likely to dominate the deployment in stationary applications out to 2030, but lead-acid batteries had the potential to remain in use if they could decrease costs.

“For instance, compared to the automotive market, the stationary lead acid production processes could be better optimized through increased automation,” he said.

“Electrode improvements that rely on carbon embedding or the introduction of copper stretch metal meshes in the negative electrode of flooded lead acid batteries also have the potential to improve system performance. This could see them retain a place in the market, notably in hybrid storage systems that combine high power storage solutions like flywheels or lithium ion batteries with less expensive (albeit less performing lead acid batteries) for longer term energy provision.”

The falling price of batteries could also stimulate a 17-fold growth of installed battery storage — from 11GWh to 181GWh, in the most conservative estimate, and up to around 421GWh in the most optimistic outlook — by 2030.

IRENA director-general Adnan Amin said that as storage technology improved 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.”

Read More Industry Latest

Analysis and Features

  • UK distribution operator dips toe into V2G technology

    Industry

    February 8, 2018 10:50 am by Jade Beevor

      Distribution operator UK Power Networks announced on January 23 it is to launch four vehicle-to-grid (V2G) projects to demonstrate how electric vehicles can be used for peak shaving and possibly deferring reinforcement costs. The projects, in the south east and east of England as well as London, will look at how the technology can read more

  • VizN C-level shake up as former CEO resigns

    Industry

    February 8, 2018 10:45 am by Jade Beevor

      US energy storage firm ViZn Energy Systems has appointed Stephen Bonner as the president and interim CEO of the zinc iron flow battery, the company announced on January 26. Bonner, who was named chairman of its board of directors on January 1, assumed the additional roles following the resignation of Ron Van Dell, who read more

  • PV and storage installations rises 1,832% on Hawaii island

    Industry

    February 8, 2018 10:40 am by Jade Beevor

      Installations of PV plus battery systems have risen by 1,830% on the Hawaii island of Oahu helped in part to falling prices, according to a report from the state’s department of business economic development and tourism released on January 31. The report, based on building permit data released by the Honolulu Department of Planning read more

  • Power behemoth GE partners with start-up Arenko on 41MW UK ESS

    Industry

    February 8, 2018 10:31 am by Jade Beevor

      Energy storage start-up Arenko announced on February 5 that it had chosen General Electric to deliver a 41MW lithium ion energy storage system to ensure security of supply to 100,000 UK homes. The strategic alliance will combine GE’s technology with London-based Arenko’s experience of the UK market as well as its proprietary energy trading read more

  • South Australia adopting cutting edge grid-scale ESS technology

    Industry

    February 8, 2018 10:25 am by Jade Beevor

      South Australia’s adoption of the latest technology to address its energy problems will involve a trial of virtual power plants and installation of a 4.3MWh lithium ion micro-grid, its government announced in early February. The state’s energy minister Tom Koutsantonis said the South Australian Produce Market would install 2.5MW array using 1,600 solar panels read more

Read More Analysis and Features

technology feature

Finding the sweet spot for business

After focusing our early efforts on producing lithium ion batteries to serve the power tool market, we built an integration team for the purpose of exploring other areas where their chemistry read more

company profiles

What is SOLARUNITED?

SOLARUNITED is the premiere association supporting and enabling Upstream Solar and energy storage professionals worldwide. read more

//Elsie change ***********************************