The world is in the midst of an electricity storage boom. The global battery pipeline – the amount of electricity storage projects planned or under construction – is six times larger than existing capacity, shows data from global intelligence company GlobalData.
Countries with massive energy storage pipelines include the US, China, Australia and the Gulf states. Four energy storage projects with 1GW or more of rated power capacity are in the pipeline, of which three are in Australia. Australia’s Clean Energy Council reported there was a 300% year-on-year increase in battery storage in the country in the first quarter of 2021.
As variable renewables like wind and solar account for an ever-increasing share of power generation capacity, policymakers are investing in batteries as a means of ensuring consistent supply. Gas and nuclear are also falling out of favour as a means of providing baseload power, due to their high cost and negative impact on the environment.
The price of lithium-ion batteries meanwhile has been plummeting – from $1,183 (€997.43) per kilowatt-hour (kWh) in 2010 to $137/kWh in 2020, shows data from research company BloombergNEF – largely thanks to technological improvements and economies of scale in production.