The world needs more (stationary) batteries: Powering the future of clean energy
In the race to decarbonise the world's electricity supply, we've made significant strides with solar panels and wind turbines. However, these renewable energy sources have an inherent challenge: intermittency. The sun doesn't always shine, and the wind doesn't always blow. This is where grid-scale energy storage comes into play, and battery storage is the frontrunner in this essential field.
The growing demand for energy storage
The International Energy Agency (IEA) has emphasised the need for massive growth in battery storage capacity. The agency’s forecasts suggest that global installed capacity needs to increase from approximately 250 GW in 2023 to more than 1500 GW by the end of the decade.
This isn't just wishful thinking. The battery storage market is already experiencing explosive growth. In 2023 alone, 42 GW of battery storage was installed globally, more than double the amount of the previous year. Approximately 20% of this capacity was dedicated to grid applications.
Why batteries?
While there are other energy storage options available, such as pumped hydro, compressed air and flywheel systems, batteries have emerged as the most versatile and practical solution for most applications. Here's why:
- Declining costs: Between 2019 and 2023, the average price of stationary lithium batteries fell by around 25%, making them increasingly cost-competitive.
- Scalability: Batteries can be easily scaled up or down to meet specific needs, from small residential systems to massive grid-scale installations.
- Rapid response: Batteries can respond almost instantaneously to grid demands, allowing them to provide crucial grid stability services.
- Flexibility: Batteries can be installed in a wide range of locations, from urban centres to remote areas.
- Technological advancements: Ongoing research is continually improving battery performance, lifespan, and safety.
The economic opportunity
The potential for growth in the battery storage market is staggering. Cited in The Economist, Bain & Company, a global consultancy, estimates that the market could expand from around $15 billion in 2023 to between $200 billion and $700 billion by 2030. By 2040, it could reach an astonishing $1 trillion to $3 trillion.
This growth is attracting significant investment and spurring innovation. New battery technologies, such as sodium-ion and solid-state batteries, are being developed to address some of the limitations of current lithium-ion chemistry.
Challenges and considerations
While the future of battery storage looks bright, there are many challenges that will need to be overcome.
Ensuring a stable and ethical supply chain for battery materials is central to the responsible production of batteries. This involves sourcing raw materials such as lithium, cobalt, nickel, and other essential components in a way that guarantees a consistent supply while upholding ethical and sustainable practices throughout the supply chain. This includes considering environmental impact, labour conditions, and community welfare when extracting and processing these materials.
Environmental considerations extend to ensuring that battery production and eventual recycling are managed sustainably. This includes considering the extraction of raw materials used in batteries, the manufacturing process, transportation, usage and end-of-life disposal or recycling. Sustainable practices throughout the entire battery lifecycle are needed to minimise carbon emissions and resource depletion and prevent environmental pollution.
With the increasing integration of batteries into the grid, robust systems need to be developed to manage and optimise their utilisation. These systems are essential for ensuring the seamless integration of battery energy storage into the grid infrastructure, maximising potential benefits while maintaining grid stability and reliability.
Given the growing reliance on batteries, it is essential to prioritise their safety and dependability. This includes implementing rigorous testing and quality control measures to ensure that batteries operate safely and consistently, thereby minimising the risk of malfunctions and failures.
The importance of testing
Regular testing of stationary batteries is essential to:
- Ensure safety and minimise potential hazards
- Maximise battery lifespan and performance
- Identify and address issues before they lead to system failures
- Optimise battery management and usage
High quality test equipment, such as that in the Megger range, is crucial for accurately assessing battery health and performance. From impedance testing to discharge testing, comprehensive battery testing regimes will help to maintain the reliability and efficiency of our growing energy storage infrastructure.
Conclusion
The world needs more stationary batteries, and the market is responding to this demand with remarkable growth and innovation. As we continue to build our clean energy infrastructure, batteries will play an increasingly central role in ensuring a stable, reliable and sustainable electricity supply.
However, with increased reliance comes increased responsibility. Regular testing and maintenance of battery systems will be critical to realising the full potential of energy storage technology. By investing wisely in test procedures and equipment, we can ensure that our battery-powered future is not only clean but also safe and reliable.
