According to projections by BNEF (BloombergNEF), the price of lithium-ion batteries is expected to fall by 68% by 2050. Last year, due to the increase in orders and the growth in sales of EVs (electric vehicles), there was already a 89% drop. Another point highlighted by the consultancy is that energy storage projects – which provide transmission and distribution services – will represent a market worth US$ 277 billion by 2050.
Germany, for example, plans to spend €348 million and France €80 million on storage-related initiatives. “Batteries can reduce grid congestion and delay the need for new lines in the power system. As grid costs rise or remain stable, the cost of a lithium battery is expected to rise from $320 per kWh in 2020 to $104 per kWh by 2050,” BNEF noted.
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“However, the use of such equipment to support the network is still in its infancy. It could take two decades for the market to reach the US$10 billion per year mark”, reported the company.
To accelerate growth, BloombergNEF said the segment needs regulatory frameworks that clarify who can own energy storage systems and how to reward grid owners for reducing capex (capital expenditur).
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