Post: IEA calls for sixfold growth in energy storage capacity

IEA calls for sixfold growth in energy storage capacity

The International Energy Agency (IEA) has highlighted the significance of battery energy storage technology in the shift towards sustainable energy.

In its Batteries and Secure Energy Transitions report, published on 25 April, the IEA underscores the critical role of batteries in achieving the climate and energy objectives outlined at the COP28 climate conference. The report highlights the remarkable growth of battery technology, which surpassed most other clean energy technologies in 2023, driven by cost reductions, innovation, and supportive policies.

Significant growth was observed across various sectors, including utility-scale battery projects, behind-the-meter batteries, microgrids, solar home systems, and electric vehicles (EVs). The deployment of battery storage capacity reached 42GW worldwide, marking a year-on-year increase of over 130%. Additionally, 2023 saw a 40% increase in EV battery deployment, with electric cars accounting for the majority of batteries used in the energy sector. But it estimates a sixfold increase in storage capacity is required to fulfil the targets set for 2030.

In the most ambitious scenario outlined in the report, total spending on batteries across all applications is forecasted to surge to $1.2T by 2030, marking a nearly 400% increase from 2023. This would effectively double the share of batteries in overall clean energy investment within seven years.

The report notes that in less than 15 years, battery costs have fallen by more than 90% – one of the fastest declines ever seen in clean energy technologies. But it said costs need to come down further without compromising quality and technology to globally scale up batteries. Cost cuts also make standalone battery storage more competitive with natural gas peaking options.

GridBeyond CEO and Co-founder Michae Phelan said:

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