Three takeaways about the current state of batteries

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Three takeaways about the current state of batteries

By Casey Crownhart | MIT Technology Review | May 2, 2024

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First, there’s a new special report from the International Energy Agency all about how crucial batteries are for our future energy systems. The report calls batteries a “master key,” meaning they can unlock the potential of other technologies that will help cut emissions. Second, we’re seeing early signs in California of how the technology might be earning that “master key” status already by helping renewables play an even bigger role on the grid. So let’s dig into some battery data together. 

1. Battery storage in the power sector was the fastest-growing commercial energy technology on the planet in 2023.  Deployment doubled over the previous year’s figures, hitting nearly 42 gigawatts. That includes utility-scale projects as well as projects installed “behind the meter,” meaning they’re somewhere like a home or business and don’t interact with the grid.  Over half the additions in 2023 were in China, which has been the leading market in batteries for energy storage for the past two years. Growth is faster there than the global average, and installations tripled from 2022 to last year. 
2. Batteries are starting to show exactly how they’ll play a crucial role on the grid.  Energy storage is starting to catch up and make a dent in smoothing out that daily variation. On April 16, for the first time, batteries were the single greatest power source on the grid in California during part of the early evening, just as solar fell off for the day. Batteries have reached this number-one status several more times over the past few weeks, a sign that the energy storage now installed—10 gigawatts’ worth—is beginning to play a part in a balanced grid. 
3. We need to build a lot more energy storage. Good news: batteries are getting cheaper.  While early signs show just how important batteries can be in our energy system, we still need gobs more to actually clean up the grid. If we’re going to be on track to cut greenhouse-gas emissions to zero by midcentury, we’ll need to increase battery deployment sevenfold. The good news is the technology is becoming increasingly economical. Battery costs have fallen drastically, dropping 90% since 2010, and they’re not done yet. According to the IEA report, battery costs could fall an additional 40% by the end of this decade. Those further cost declines would make solar projects with battery storage cheaper to build than new coal power plants in India and China, and cheaper than new gas plants in the US. 

2 key takeaways from the article

1. There’s a new special report from the International Energy Agency all about how crucial batteries are for our future energy systems. The report calls batteries a “master key,” meaning they can unlock the potential of other technologies that will help cut emissions. 
2. Three takeaways about the current state of batteries are: One, battery storage in the power sector was the fastest-growing commercial energy technology on the planet in 2023. Two, batteries are starting to show exactly how they’ll play a crucial role on the grid.  Batteries have reached this number-one status several more times over the past few weeks, a sign that the energy storage now installed—10 gigawatts’ worth—is beginning to play a part in a balanced grid. Three, we need to build a lot more energy storage. Good news: batteries are getting cheaper.  Continuous cost declines would make solar projects with battery storage cheaper to build than new coal power plants in India and China, and cheaper than new gas plants in the US. 

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Topics:  Technology, Environment, Clean Energy, Batteries, USA, China, Efficiency, Alternative Energy, Fuel, Gas Plants, Coal Plants