August 24 (Solar) – Global deployments of lithium-ion battery storage capacity are expected to expand at a compound annual growth rate (CAGR) of 55% through 2022, according to GTM Research.
In its latest report, the market analyst predicts that annual lithium-ion installations will grow more than eightfold in the five year-period, from 2 GWh in 2017 to 18 GWh in 2022. The US will keep its leading positions on the market in terms of new installations, followed by China, Japan and Australia, where deployment is supported by early battery projects, market reforms and storage mandates. Thanks to their centralised policies, countries such as China and South Korea will experience a “rapid uptake,” the analyst says.
Following a rise in demand for electric vehicle batteries, which also affect costs for grid-related battery storage applications, the prices of battery packs are forecast to drop by 82% in 2040 to USD 39 (EUR 33.7) per kWh from USD 219/kWh last year. This will in turn allow the use of battery storage in a wider range of applications, while the value of energy storage assets will rise due to the expansion of wind and solar.
GTM Research notes that prices in Australia, for instance, have already started their downward trend after bringing online its first large-scale battery storage facility, triggering hopes that batteries could start “economically displacing” gas plants for peak power by 2025. Meanwhile, batteries are seen to become the lead provider of flexible capacity in California, which will in turn drag down prices, amid plans for a complete phaseout of fossil-fueled electricity by 2045.
(USD 1.0 = EUR 0.865)