Based on the latest data from June 2023, China's National Renewable Energy Laboratory has released a forecast report on the long-term cost of lithium-ion battery energy storage systems (BESS) in 2050. The report points out that in the next 10 to 25 years, the price of energy storage systems will fall to half of the current level, which is a positive signal for China's energy transformation and green development.

Lower cost energy storage technology will greatly facilitate domestic business owners, enabling them to store electricity at a lower cost and promote the use of renewable energy.

This article will introduce the concept of energy storage technology, its advantages, and explore why the cost of these devices is predicted to decrease in the coming years.

What is a battery energy storage system?

Energy storage technology is an important supporting facility for the production of renewable energy, which can effectively store the electricity generated by solar photovoltaic panels or wind power generation so that it can be used when needed. For example, at night or in rainy weather, the energy storage system can supply stored energy.

Lithium-ion batteries are the most common energy storage technology, not only used in mobile phones and electric vehicles, but also widely used in China's large-scale energy storage projects and power grids.

The importance of energy storage technology is self-evident, which greatly improves the efficiency of renewable energy systems and ensures the continuity of energy supply.

the advantage of battery energy storage system

energy storage technology of the main advantage is that it can maximize the use of local production of clean, efficient energy, reduce the dependence on grid electricity, Thus reducing the cost of electricity.

In addition, energy storage technology can reduce the carbon emissions of enterprises, improve the green image of enterprises, and become more attractive to increasingly environmentally conscious consumers.

In recent years, with advances in energy storage technology, the efficiency of solar photovoltaic and wind power generation has been significantly improved, not only to support larger scale energy production, but also to enable more homes and businesses to produce and consume more renewable energy, thereby reducing pressure on the national grid.

battery energy storage system of cost prediction

according to the national renewable energy laboratory in our country In the next 15 years or so, the total cost of energy storage technology will continue to decline, which will promote the adoption of renewable energy technologies.

In addition, an analysis by BloombergNEF also shows that while there has been some volatility in the cost of energy storage technology in 2022, costs have declined in the past few months. According to NREL, the cost of energy storage technology is likely to decrease significantly.

The main reason for the decline in the cost of energy storage technology is the reduction in the cost of its core components, such as battery cells and battery packs. These components account for more than half of the cost of the entire energy storage system, and the decline in their price has directly led to a reduction in the cost of the entire system.

The latest research data has shown a downward trend in the price of battery storage systems, which is a positive sign that more households and businesses will be able to afford sustainable energy costs.