Batteries at the forefront of the global green energy shift, says IEA report
The International Energy Agency has released a report titled "Batteries and the Safe Energy Transition." It analyses the technology essential for shifting to sustainable energy sources. In the coming years, we can expect a significant reduction in energy storage costs, which will directly contribute to the development of renewable energy sources.
5 May 2024 08:23
Renewable energy sources, such as solar, wind, or geothermal energy, are gaining global significance as crucial elements in combating climate change and environmental degradation. A serious challenge that still hinders the broader implementation of these technologies is the problem of storing generated energy. However, this situation may soon change.
Batteries key to green transformation
According to the International Energy Agency's report "Batteries and the Safe Energy Transition," technologies related to energy storage are crucial for ensuring energy security and transitioning to clean energy.
Batteries are used to store energy, helping reduce stress on power grids and increasing access to electricity. Currently, there is growing political support from governments for energy storage technologies. They are setting new goals, awarding financial grants, and enacting reforms to increase access to them.
The report’s authors indicate that batteries will play a key role in achieving the energy goals set by nearly 200 countries during the climate conference COP28 in Dubai, including tripling renewable energy generation capacity by 2030, doubling the pace of improving energy efficiency and moving away from fossil fuels.
How battery prices can boost investment in renewable energy sources?
Advances in battery production technologies have led to a reduction of around 90% in their average cost since 2010. Lithium-ion batteries have become one of the main elements of modern economies. Thanks to them, there has been a revolution in the markets for electronic devices and electric cars. In the past three years, battery production capacities have tripled, with most cells being produced in China.
Experts predict that by 2030, the investment costs of energy storage systems will decrease by up to 40%. Such a cost reduction will significantly impact the renewable energy market. For example, in China, India, and the United States, solar power plants equipped with energy storage will be cheaper to construct than new coal or gas power plants.
Energy storage will gain increasing popularity. The report predicts a sixfold increase in the global energy storage capacity by 2030, with 90% attributed to batteries and the remaining 10% to pumped storage power plants.
