Led by price declines in lithium-ion (li-ion) batteries, system prices have fallen significantly over the last few years, according to a report from the IHS Energy Storage Intelligence Service.
Average li-ion battery prices fell 53% between 2012 and this year. By 2019, the report says, prices are forecast to decline by half again.
Falling system costs will be a major factor enabling broader global market growth for the technology. For the first time, South Korea, Japan and the U.S. will each exceed a record 100 MW of annual energy storage installations this year. These three countries will account for 59% of global installations by 2016, IHS says. Deployment will also increase in other regions in the next five years.
Storage inverters, power conversion systems and other components will also experience significant competition in the coming years, and prices are expected to fall quickly, IHS says. For a typical 30-minute duration utility-scale li-ion system, more than 60% of the total reduction in system costs between 2013 and 2019 will come from the balance-of-plant equipment rather than from batteries alone.
‘The breakdown of system costs, and the future evolution of prices, varies significantly depending on whether the system is configured to provide a high-power or high-energy application,’ says Sam Wilkinson, solar supply chain and energy storage analyst for IHS Technology. ‘But, battery costs will continue to decline over the next five years.’
More information on the ‘Grid-Connected Energy Storage Report – 2015’ can be found here.