By 2030, significant cost reductions are projected across various energy storage technologies, driven by both technological innovations and economies of scale. Here are key projected cost reductions:
Key Technologies and Their Projected Cost Reductions
- Lithium-ion Batteries:
- Projected price per kWh for automotive cells is expected to decline from around $160 in 2021 to $80 by 2030.
- Stationary applications could see further declines, potentially reducing the total installed cost by up to 54-61%.
- Sodium-ion Batteries:
- These batteries are expected to come to the market with production costs potentially 30% less than lithium-ion phosphate (LFP) batteries.
- Cost reductions could range significantly due to innovations in materials and manufacturing.
- Lead-acid Batteries:
- Potential cost reductions of around $0.31/kWh are projected, though achieving substantial reductions requires significant innovations.
- Flow Batteries and Pumped Hydro:
- Flow batteries could achieve cost declines by improving round-trip efficiency and reducing installed costs to between $108 and $576/kWh by 2030.
- Pumped hydro and compressed air storage are projected to achieve substantial cost reductions as well, with pump hydro potentially reducing costs by 85%.
- Compressed Air Energy Storage (CAES) and Flywheels:
- CAES could see a cost decline of about 17% by 2030.
- Flywheels are expected to decrease in cost by 35%.
- Long Duration Energy Storage (LDES) Technologies:
- The U.S. Department of Energy aims for a 90% cost reduction for LDES technologies by 2030, targeting a levelized cost of storage (LCOS) below $0.05/kWh.
Overall Cost Reduction Outlook
- Global Battery Costs: Overall, further innovations and economies of scale are expected to reduce battery costs across applications, making energy storage more competitive with traditional power sources.
- Institutional Support: Initiatives like the U.S. Department of Energy’s Long Duration Storage Shot and innovation pipelines support these goals, identifying specific technological advancements that could accelerate cost reductions.
In summary, by 2030, significant reductions in the cost of energy storage technologies are anticipated, driven by both technological advancements and increasing economies of scale. This trend is crucial for integrating more renewable energy sources into the grid and meeting global climate goals.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-are-the-projected-cost-reductions-for-energy-storage-systems-by-2030/
