Energy storage cost projections reveal significant shifts by 2025
Category: Resource Management · Effect: Strong effect · Year: 2019
The cost of various energy storage technologies, including batteries and non-battery systems, is projected to decrease significantly by 2025, impacting their viability for different applications.
Design Takeaway
Factor in the projected cost reductions of energy storage technologies when designing systems for future implementation, prioritizing solutions that offer the best long-term value.
Why It Matters
Understanding the projected cost trends of diverse energy storage solutions is crucial for designers and engineers when specifying systems for new projects. This foresight allows for more informed decisions regarding long-term operational expenses and the selection of technologies that align with future economic realities.
Key Finding
The research projects that most energy storage technologies will become cheaper by 2025, with lithium-ion batteries continuing to be a strong contender and larger-scale options like pumped hydro remaining important.
Key Findings
- Cost projections indicate a general decrease in the price of most energy storage technologies by 2025.
- Lithium-ion batteries are expected to remain a dominant and increasingly cost-effective option.
- Non-battery storage solutions like pumped storage hydropower and compressed air energy storage will maintain their relevance for large-scale applications.
Research Evidence
Aim: To characterize the cost and performance parameters of various energy storage technologies and project their cost evolution.
Method: Literature review and stakeholder consultation
Procedure: The study compiled cost and performance data for six battery energy storage systems (BESS) and four non-BESS technologies, alongside combustion turbine data. Information was gathered from literature, vendor discussions, and project cost summaries. Estimates were developed for 2018 and projected to 2025.
Context: Energy storage systems for power generation and grid applications
Design Principle
Anticipate and leverage future cost reductions in technology selection for long-term economic viability.
How to Apply
When designing systems requiring energy storage, consult current cost data and future projections to select the most economically sound technology for the intended lifespan of the project.
Limitations
Projections are subject to market fluctuations and technological advancements not fully captured in the study.
Student Guide (IB Design Technology)
Simple Explanation: The cost of batteries and other energy storage systems is expected to go down by 2025, making them a better deal for future projects.
Why This Matters: This helps you make smart choices for your design project by knowing which technologies will be more affordable in the future, saving money and making your design more practical.
Critical Thinking: How might unforeseen geopolitical events or supply chain disruptions impact the projected cost reductions of energy storage technologies?
IA-Ready Paragraph: The projected decrease in the cost of energy storage technologies, such as lithium-ion batteries and pumped hydro, by 2025 suggests that designers can anticipate more economically viable integration of these systems into future projects, influencing long-term operational cost considerations.
Project Tips
- When choosing materials or components, look at how their costs are expected to change over time.
- Consider the long-term financial implications of your design choices.
How to Use in IA
- Use this research to justify the selection of a particular energy storage technology based on its projected cost-effectiveness over the product's lifecycle.
Examiner Tips
- Demonstrate an understanding of the economic factors influencing technology choices, including future cost trends.
Independent Variable: Type of energy storage technology
Dependent Variable: Cost ($/kWh or $/kW)
Controlled Variables: Year of projection (e.g., 2018 vs. 2025)
Strengths
- Comprehensive evaluation of multiple storage technologies.
- Inclusion of both battery and non-battery systems.
Critical Questions
- What are the assumptions behind the cost projections, and how sensitive are they to changes in those assumptions?
- How do performance metrics (e.g., efficiency, lifespan) interact with cost to determine overall value?
Extended Essay Application
- An Extended Essay could investigate the economic feasibility of implementing a specific energy storage solution for a community or industry, using these cost projections as a foundational element.
Source
Energy Storage Technology and Cost Characterization Report · 2019 · 10.2172/1573487