Posted on: 10/10/2017
The falling price of batteries could stimulate a 17-fold growth of installed battery storage, according to a report from the International Renewable Energy Agency (IRENA).
The report forecast that the cost of battery storage for stationary applications as opposed to transportation applications could fall by up to 66 per cent by 2030.
“As storage technology improves and prices decline, both utility-scale and small-scale, distributed applications could grow dramatically, accelerating renewable energy deployment” said IRENA Director-General Adnan Amin. “In this dynamic, low-carbon energy environment, now is a crucial time for storage technology.” added Mr. Amin.
“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," he concluded.
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.
New proposals from Ofgem
Meanwhile battery storage systems could come under regulations governed by electricity generation licences under proposals unveiled by Ofgem.
The energy regulator wants to encourage more battery storage to be connected to the grid to help cope with the unpredictability of renewable energy.
Ofgem said: “The modified licence will provide regulatory certainty to storage facilities, both existing and developing, encourage deployment of this new technology into the system and will ensure that a level playing field exists, so that storage can compete fairly with other sources of flexibility.
“The proposed changes will also address in an appropriate manner the issues storage facilities face surrounding final consumption levies.”
The consultation runs until 27 November.