LONDON: Batteries are getting cheaper and allowing solar power to be used beyond daylight hours, according to new analysis from clean energy think tank Ember.
The costs of building giant, utility-scale batteries globally have declined significantly in recent years – including a 40% drop in 2024 – and have room to fall further, the report released yesterday showed.
This in turn has lowered the cost of storing solar for use anytime to US$76 per megawatt-hour, a highly competitive level against new fossil fuel generation.
Ember collected evidence from recent power auctions in Italy, Saudi Arabia and India, and from developers across global markets, it said.
The drop in energy storage costs comes as record levels of solar and wind capacity go online in some countries, straining grids that are forced to curtail their use in the interest of stability.
Affordability is also key for high-polluting, developing countries looking to transition away from fossil fuels that otherwise remain attractive due to their cost-competitiveness.
“Solar is no longer just cheap daytime electricity, now it’s anytime dispatchable electricity,” said Kostantsa Rangelova, global electricity analyst with Ember and the lead author of the report.
“This is a game-changer for countries with fast-growing demand and strong solar resources.” Smaller battery packs are also getting cheaper due to manufacturing overcapacity, intense competition and an ongoing shift to lower-cost lithium iron phosphate batteries.
This is expected to accelerate electric vehicle adoption and deployment of larger storage systems, according to the latest forecast by BloombergNEF. — Bloomberg
