Cost Projections for Utility-Scale Battery Storage
Cost projections for utility-scale battery storage over the next decade, primarily focusing on lithium-ion systems, indicate a significant reduction in costs. Key points from recent studies and forecasts include:
- Cost Reductions: By 2030, costs for utility-scale battery energy storage systems (BESS) are expected to decrease substantially. According to NREL, costs could potentially fall by about 47% from their current levels by 2030. This decline is attributed to advancements in technology and increased economies of scale as the global demand for battery storage grows.
- Cost Projections (Per kWh): Projections for 4-hour duration systems show costs ranging from $245/kWh to $403/kWh in 2030, reflecting low, mid, and high scenarios, respectively.
- Future Outlook: Beyond 2030, cost reductions will continue, albeit at a slower pace. By 2050, the costs are projected to drop further to between $159/kWh and $348/kWh. The smallest projected relative cost decline from 2030 to 2050 is around 5.8%.
- Market Growth: The overall market for BESS is anticipated to reach between $120 billion and $150 billion by 2030, highlighting significant investment opportunities in the sector.
These projections underscore the potential for utility-scale battery storage to become more economically viable in the upcoming decade, supporting its integration into electrical grids as part of renewable energy systems.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-are-the-cost-projections-for-utility-scale-battery-storage-over-the-next-decade/
