TechBattery breakthroughs set to power up the renewable energy revolution

Battery breakthroughs set to power up the renewable energy revolution

Cheaper energy storage will result in increased investment in renewable energy sources.

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3:07 PM EDT, May 4, 2024

The International Energy Agency recently unveiled a report titled "Batteries and the Safe Energy Transition," which delves into the critical role of technology in pivoting towards sustainable energy sources. It forecasts a dramatic decrease in energy storage costs shortly, a development poised to bolster renewable energy sources significantly.

Renewable energy, encompassing solar, wind, and geothermal power, is rapidly emerging as an essential combatant against climate change and environmental degradation. One of the chief obstacles to their widespread adoption has been the issue of energy storage. However, this challenge is set to diminish soon.

Batteries: A linchpin in green transformation

According to the "Batteries and the Safe Energy Transition" report by the International Energy Agency, energy storage technologies are pivotal for ensuring energy security and facilitating a shift to clean energy.

Batteries store energy and are instrumental in alleviating pressure on power grids and expanding electricity access. Governments worldwide are increasingly supporting energy storage technologies by setting new objectives, providing financial incentives, and implementing reforms.

The report highlights that batteries will be instrumental in meeting the ambitious energy targets agreed upon by nearly 200 countries at the COP28 climate conference in Dubai. These targets include tripling renewable energy generation capacity by 2030, doubling the rate of energy efficiency improvements, and reducing reliance on fossil fuels.

How falling battery prices can catalyze investment in renewable energy?

Technological advancements in battery production have led to a staggering 90% drop in their average cost since 2010. Lithium-ion batteries, in particular, have spurred a revolution in electronic and electric vehicle markets. Over the past three years, battery production capacity has tripled, with China leading the global output.

Experts predict a further 40% decrease in the investment costs of energy storage systems by 2030. This cost reduction is set to impact the renewable energy sector substantially. For instance, solar power plants with energy storage in China, India, and the United States will be less expensive to build than new coal or gas power plants.

The surge in energy storage is projected to continue, with the report forecasting a sixfold increase in global energy storage capacity by 2030. Batteries will account for 90% of this growth, while the remaining 10% will come from pumped storage power plants.