charging up: battery storage investments to reach $620 billion by 2040 - storage battery
The energy storage market has grown rapidly around the world.
Rising costs
Competitive power of carbon
Free energy, coupled with technological improvements and more environmental-focused government policies, has driven a surge in demand for batteries in the transportation and utility power sectors.
But how big is this prosperity expected?
Bloomberg New Energy Finance (BNEF)
It is predicted that by 2040, the global energy storage market will grow to 942GW, attracting up to $620 billion in investment.
This makes sense because wind and solar power capacity is expected to exceed natural gas power capacity shortly after 2040-at least according to the International Renewable Energy Agency (IRENA).
And renewable energy stations that generate intermittent electricity (
The sun does not always shine and the wind does not always blow)
Sufficient storage space will be needed to make it economically viable.
Not to mention the battery.
Electric vehicles (EVs)
The global fleet expanded at a CAGR (CAGR)
52% of the last five years
This ratio is expected to stabilize at around 25% from now until 2025.
At present, there are 3 million electric vehicles on the road, an estimated one.
2 million of them were sold in 2017.
It's about 1.
5% of car sales last year.
Market Drivers for lithium cost reductionion (LI)
The battery is a key driver to increase the demand for battery storage. Lithium-
Although alternatives are beginning to emerge, ion is the leading battery storage technology to date.
Between 2010 and 80%, the price of lithium batteries fell by 2017 ($/kWh)
It is expected that costs will fall by another 52% during the period from 2018 to 2030.
BNEF's head of energy storage expects "energy storage" to grow to 7% of the world's total installed capacity in 2040.
There is nothing worth considering (non-hydro)
Renewable energy accounted for 8% of global electricity production in 2017.
Market participants in China, the United States, India, Japan, Germany, France, Australia, South Korea and the United Kingdom are leading the energy storage market, accounting for the total
In the 1940s S, the main enterprises operating in the battery energy storage system market included ABB (Switzerland), LG Chem (South Korea), NEC (Japan), Panasonic (Japan), Samsung SDI (South Korea)
, AEG power supply solution (Netherlands)
General Electric (US), Hitachi (Japan), Siemens (Germany), and Tesla (US).
Keep an eye on these companies as battery deployment and investment continue to grow.
Before the challenge
The outstanding barrier to battery storage is cost.
The technology is still very expensive and has not been deployed on a large scale yet. scale projects.
At present, the cost of lithium
Ion battery for "front of meter" unit (
Energy for the grid)
When the power grid needs fast energy-the "peaker" unit-runs $282/MWh to $347/MWh based on its horizontal power cost (LCOE).
In contrast, a combination
The price of circulating natural gas is close to $175/MWh.
"Behind" storage costs-systems that take power from the grid (
Thinking about family and business)
-Reach LCOE between $800/MWh and $1300/MWh.
This is hardly cost competitive in most applications.
So, although the cost has been falling (figure 1)
The perception of high prices by policy makers has been an obstacle to investment.
Many people have outdated concepts about the price of the system, assuming that the price of the battery is still the same as a few years ago or even six months ago.
The lack of standardized and outdated regulatory policies is also a prominent issue that you can expect to see in any emerging technology.
But as the battery continues to penetrate into the energy sector, we can expect adjustments in the market and regulations.
The expansion will continue to push down prices and lower prices will attract more investment.
Industry participants expect a large difference in cost reductions, but lithium-
Ion capital costs are expected to drop by 36% over the next five years.
In the next twenty years?
The future of energy storage is bright. now it is driven by lithium. ion. James C.
Grant, project manager, international market analysis Co. , Ltd.