International Renewable Energy Agency | October 2017:
Foreword: It is truly remarkable what a difference five years can make in the ongoing transformation
of the energy sector.
As recently as 2012, questions about high generation costs still overshadowed the rise of solar and wind power. But what was already clear, to those watching closely, was that economies of scale, technological improvements, greater competition in supply chains and the right policy conditions had started a continuous process, driving down the cost of electricity from these sources.
Today, the competitiveness of renewable power generation options is increasingly evident to all. Yet the hard work continues, as governments, industry and investors plan the next stage of the energy transformation.
This involves pro-active discussions to create new policies, regulations, market structures and industry strategies, particularly to support the stable integration of the highest possible shares of power generation from variable renewables (i.e. solar and wind). Strategies are also needed to decarbonise end uses, from transport and industry to the buildings in which we live and work.
This brings the role of electricity storage, and in particular battery systems, to centre stage.
Storage – from the batteries in solar home systems to those in electric vehicles – will be crucial to accelerating renewable energy deployment. It can also provide some of the flexibility that future electricity systems will need to accommodate the fluctuating availability to solar and wind energy. Longer-term, as countries strive to significantly reduce emissions from power generation, the importance of storage will only grow.
Although pumped hydro storage dominates total electricity storage capacity today, battery electricity storage systems are developing fast, with falling costs and improving performance. By 2030, the installed costs of battery storage systems could fall by 50-66%.
As a result, the costs of storage to support ancillary services, including frequency response or capacity reserve, will be dramatically lower. This, in turn, is sure to open up new economic opportunities.
Battery storage technology is multifaceted. While lithium-ion batteries have garnered the most attention so far, other types are becoming more and more cost-effective. As the present report indicates, battery storage in stationary applications is poised to grow at least seventeen-fold by 2030.
We have the technologies, and we have a template for success. Industry growth, access to new markets, and continued support policies where needed can make stored power highly competitive, like solar and wind power before it. As governments set market forces to work, electricity storage is poised to play a decisive role in the transition to a sustainable energy future.
To read full report, in PDF format – please click here.
