BNEF has published its latest Energy Storage Outlook report and says large scale deployment will provide the majority of the 1,095 GW/2,850 GWh of battery storage worldwide in 2040, with prices driven down further by grid services demand and EVs.
August 1, 2019
The rise ofÂ electromobilityÂ and demand forÂ stationary storageÂ will drive lithium-ionÂ battery costsÂ down by a further 50% by 2040, according toÂ Bloomberg New Energy Financeâ€™s latest Energy Storage Outlook report.
With costs for the technology having already tumbled 85% from 2010 to 2018, the business intelligence firm predicts 1,095 GW/2,850 GWh of energy storage will be installed in 21 yearsâ€™ time, up from 9 GW/17 GWh last year.
By that point,Â ChinaÂ andÂ the United StatesÂ will dominate, according to theÂ Energy Storage Outlook 2019Â study, with significant markets inÂ India andÂ GermanyÂ and only slightly lower volumes inÂ Latin America,Â Southeast AsiaÂ andÂ France.
The role played by solar in the energy storage revolution was highlighted by BloombergNEFâ€™s head of energy storage Logan Goldie-Scot in a press release issued by the firm to promote the report, published yesterday.
â€śIn the near term, renewables-plus-storage â€“ especiallyÂ solar-plus-storageÂ â€“ has become a major driver for battery build,â€ť said Goldie-Scot. By 2040, however, BloombergNEF predicts energy storage will have become a practical alternative to newly built generation assets of any kind.
In a significant indicator of the rapid rate at which stationary storage is altering the energy market, the 2019 report now predicts utility scale batteries will make up the majority of storage deployment by 2040. Until now the analysts have expectedÂ behind-the-meter batteriesÂ â€“ whether in homes or businesses â€“ to take the lead.
BloombergNEF also revised up theÂ amount of investment energy storage will attractÂ over the next 21 years, adding $40 billion for a predicted $662 billion.
The analyst has predicted solar and wind energy will supply almost 40% of the worldâ€™s electricity by 2040, up from 7% today and driving demand for the energy shifting/peaking services available to grid operators through battery storage. The study also predicts electric vehicles will make up a third of the global passenger transport fleet in 21 yearsâ€™ time, up from less than half a percent today.
Noting the explosion in demand for energy storage will be good news forÂ lithium, cobalt and nickel miners, the release issued to promote the annual report made no mention of attempts to develop battery chemistries withÂ less ecologically damaging materials.