Smart Buildings

Predictions Suggest a Sharp Fall in Energy Storage Costs

A report published by the Australian Renewable Energy Agency last week predicts a “mega-shift” to energy storage adoption, driven by demand. The report expects to see the costs of lithium-ion batteries fall by 60% in less than 5 years, and by 40% for flow batteries, and all this without significant changes in chemistry and technology, simply through economies of scale. The report prepared by AECOM, suggests demand will come from both the supply side (as networks work to adapt to increasing distributed and renewable energy capacity) and from consumers wishing to store their solar energy; as well as knock on effects from the rapidly changing economic proposition. The average global cost of installing residential energy storage systems will fall from US$1,600 per kWh in 2015, to US$250 per kWh by 2040, according to the latest Bloomberg New Energy Finance (BNEF) report. In BNEF’s ‘New Energy outlook 2015, long-term projections of the global energy sector’ forecast […]

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