According research conducted by research company BloombergNEF (BNEF), battery technology which is the core component in securing a continuous supply of renewable energy from weather dependant sources (wind & solar) is becoming competitive in pricing.
An analysis by BNEF shows that in the case of lithium-ion batteries, the levelised cost of electricity (LCOE), or the overall cost of constructing and operating a plant that generates electricity has fallen 35% since the former since months 2018. The BNEF analysis further showed a 24% drop in LCOE for offshore wind while benchmark costs for onshore wind and solar dropped by 10% and 18% respectively.
Elena Giannakopoulou, Head of Energy Economics at BNEF said, “Looking back over this decade, there have been staggering improvements in the cost-competitiveness of these low-carbon options, thanks to technology innovation, economies of scale, stiff price competition and manufacturing experience.”
The benchmark cost for solar has dropped 84%, since 2010, while the price of lithium-ion battery storage has dropped by more than three quarters since 2012. When the wind doesn’t blow and the sun doesn’t shine, batteries present the opportunity to cover peaks in demand by drawing energy from said batteries. Today solar and wind plants are leveraging battery storage systems in order to assist in the maintaining of energy supply.
According to the World Economic Forum’s Global Battery Alliance, a low-carbon future is unthinkable without batteries. They describe batteries as “a core technological enabler for the Fourth Industrial Revolution”. The Alliance says, that batteries could be utilised to enable 1 billion people on a global scale who don’t have electricity to gain access to energy supply in the form of electricity.
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