Battery storage could increase to 250GW capacity globally by 2030 states a new report from the International Renewable Energy Agency (IRENA).
REthinking Energy 2017, now in its third edition, was released on the weekend at IRENA’s seventh Assembly.
The use of batteries is expected to jump substantially over the next few years and the largest markets are expected to be North America, Europe and the Asia-Pacific region.
Already in Germany, more than 10,000 solar power systems feature energy storage.
Last year, lithium-ion batteries accounted for around 50% of new energy storage deployments. Lithium-ion chemistry, used in solutions such as Tesla Powerwall 2, Enphase AC Battery and sonnen battery systems is expected to continue to dominate, making up to 80% of global electricity battery storage installations by 2025.
IRENA states the market value of battery storage reached USD 2.2 billion in 2015 and is forecast to jump to USD 14 billion in 2020.
Before battery storage can be fully integrated as a mainstream option in the power sector, IRENA says several challenges need to be overcome; including uncertainty on regulatory treatment and raising awareness of the benefits of storage. Cost presents another challenge, but IRENA notes costs of residential and utility-scale storage have already fallen substantially and will continue to fall.
REthinking Energy 2017 also paints a rosy picture for solar PV, which IRENA says could account for as much as 7% of global power generation by 2030 – a six-fold increase from current levels.
“Solar PV offers a bright future. It has enormous potential to transform how and where electricity is generated and by whom, and to improve millions of lives in the process,” states the report; which notes the solar panel cost has plummeted 80% since 2009.
“Solar PV has already exceeded all expectations, so that many international agencies and organisations are continuously raising their forecasts of future growth.”
Perhaps where solar PV has been, energy storage may follow.
Government officials from more than 150 countries, business and community leaders gathered in Abu Dhabi for the Seventh Assembly of IRENA.
