Energy Energy Storage Electrochemical Storage Batteries

Batteries Will Change the Energy Industry Forever

Batteries

Summary

This article speaks about how energy storage is suddenly an economical asset to consider as part of the electric grid and how this could change the energy industry forever.

Perspectives and insights

  • Energy storage is starting to make financial sense, which is the only way it will ever be able to reach scale.
  • Utilities see value in energy storage as a way to offset expensive peak generation on high-demand days.
  • Utilities are also seeing energy storage as a way to reduce transmission and distribution costs, and even put off investment in new power plants.
  • Post-2023, wind plus energy storage costs could be as low as $20 to $30 per MW-hour, and solar plus energy storage $30 to $40 per MW-hour.

Xoologue - a discussion between Xoo and Moo

Moo: Battery storage has been the talk of the town for the last few years, Xoo

Xoo: As it should be. You read what I read. The numbers say it all.

Moo: And do you expect it to grow at this pace in future too?

Xoo: I expect an even higher pace of growth. Take just one statistic that the report mentions - $20-$30/MWh levelized cost for wind/solar power with batteries. We are talking about batteries increasing the cost of renewable by perhaps 25-30%, no more.

Moo: Isn’t that a significant increase, 25-30%?

Xoo: Somewhere around 2010, it was 250-300%, Moo. I rest my case.