getting the u.s. to 35 gw of energy storage by 2025 - energy storage system price

This morning, the Energy Storage Association released the white paper "35x25: Energy storage vision", which is the deployment of 35 gigawatts (GW -
1 GW equal to 1,000 MW)
Storage by 2025.
The report was developed in partnership with Navigant Research.
A number of developments in favor of energy storage were outlined, including: ESA itself acknowledged that the bridgehead view was an ambitious plan.
However, in a conversation before the release of the report, esa ceo Kelly Speakes-
Backman expressed confidence that these trends will help to achieve this vision.
A large amount of storage can add great value to the power grid and society. Speakes-
Backman noted that while the storage mentioned in the report includes all energy storage technologies, many fixed storage deployments will take advantage of lithium-
Ion technology and related costs are steadily declining, benefiting from economies of scale resulting from the use of consumer electronics and electric vehicles.
She noted that the supply chain will continue to improve efficiency and further reduce battery costs over time.
Similar to experience in the solar industry-
From customer acquisition and financing to inverter and system balance, affiliate costs will also drop significantly.
The ESA report predicts that most storage installations will be carried out within the grid size, as many efficiency gains are gained in grids that typically run less than 50% of their capacity.
For example, storage can help eliminate the need for peak power plants that are powered only at the maximum demand level and use only 5-7% of the time.
Storage can also help address the fact that our grid infrastructure is also oversized to meet peak requirements (
For example, the report states that investments to meet the top 10% of demand can account for more than 40% of the total system cost.
In New York, the cost for the first 100 hours is estimated to be $1. 7B per year. )
Although lithium technology may account for most of the market, Speakes-
Backman stressed that the report includes all storage technologies such as pumped storage, compressed air, energy storage, electro-chemical and mobile batteries, flywheel, super capacitors and other forms of energy.
This includes specific applications that can complete longer duration tasks such as mobile batteries.
At the same time, she predicted lithium-
Ion technology will continue to evolve, "We see an increase in power density, above MW --
At the same time.
"Despite the impressive opportunities and the ability to create power grid efficiency, regulatory dialogue has to catch up with the opportunities, some key obstacles still hinder the process.
Key challenges include the need to change the existing regulatory framework, developed decades ago for different central planning grids.
The current regulatory structure does not adequately address the value that storage can bring and the fact that it is a unique hybrid resource.
Energy storage is not a load, but it can absorb electricity.
It is also not a generator, but it is able to provide energy and capacity to the system when needed.
It is sometimes used as a transmission-
And distribution-
Types of resources that replace the need for expensive system capacity upgrades.
Therefore, set the rules of the sandbox to integrate effectively and efficiently-and-
These services are very important.
This process must be carried out at the federal level, particularly within the scope of the Federal Energy Regulatory Commission (FERC)
, Has been studying the notice of public rule making (NOPR)for some time.
It must also happen at the grid level (
Texas grid, for example, is not controlled by FERC)
In addition, at the National Utilities Commission level, because most of the value will be obtained by integrating storage assets into a more localized transmission and distribution system.
Former Commissioner of Maryland
Backman acknowledges that the fact that the same storage resources can be applied in multiple different ways in the life cycle of a single asset poses challenges.
She also noted that the current Internet rules require that any assets be connected to the grid (
Some wholesale markets, for example, need an entity governor).
However, as a digital asset, this is not necessary for storage.
This cost burden remains without a regulatory exemption.
Another area where the value is assigned to the elastic regulator that has not yet assigned the value is the elasticity.
As our society becomes more dependent on digital economy, automation technology, and data centers, elastic and grid hardening becomes more and more important.
The 10 mw, 30-recent experience of AES proves that storage can bring great elastic value
The minutes storage system of the dominican Republic, which helps prevent the State Grid from paralyzing during Hurricane Irma.
The following figure appropriately shows how energy storage can help stabilize the grid, solve frequency disturbances that last more than ten hours, and provide 56% more energy throughput than normal.
At all regulatory levels, how to quantify the value of resilience is a challenging issue.
How much value is there to mitigate or recover from an interruption, and who should pay for that capability?
Then the black question. start, i. e.
, Ability to restore mesh from full Blackout.
The battery has also been successfully tested to prove this capability.
How much value should be allocated for this capability?
Both the New England and Texas grid have projects that determine this value, but other markets need to address this as well.
Backman commented that one of the key challenges associated with resilience is getting the market signal right.
If DOE Secretary Perry wanted to compensate for reliability with power generation resources with 90 days of fuel at hand, she asked, how much value should storage be?
Better model and up-to-
Some suggested pricing dates in the report seem obvious, such as making sureto-
Date model and cost are used.
However, Pixar-
Backman says this is a bigger problem than people think --
Especially in the case of rapid decline
Cost environment.
In fact, she commented that, when reviewing a financial model recently, she saw an estimate of $1,000/kWh.
The cost is out of date because it was "a few years ago ".
This is how fast things change.
The CEO of ESA said that the recent installation costs have fallen sharply and estimated that "the low end of this range is now about $400/kWh . . . . . . Down 2021, or down-
As of $200-250/kWh. ”Speakes-
Backman observed that this cost decline was roughly similar to the cost decline in solar energy in recent history, and this simulation was also applicable to employment.
Just as the solar industry has become more efficient, the same projects now require less efficiency --
Sixth, the labor force required in 2008, storage will also have a similar trend.
The ESA white paper estimates that about one job is needed for the same job
There are eight workers in just five years.
This happens when the industry matures.
Combine storage with renewable energy and traditional power generation
Backman also highlighted the appeal of storage as a key driver for increasing system renewable energy.
Storage assets can help provide capacity values.
They can alleviate the problem of cutting and negative market prices because "you can store energy and use it online instead of falling prices.
Storage can also be effectively combined with traditional foundations
Power generation to help meet the ever-fluctuating demand for electricity and reduce the amount of bicycles needed for traditional facilities.
This may occur near the power generation facility, or it may occur closer to the distribution level where the load and congestion actually occur.
From a long-term perspective
Backman observed that reaching 35 GW of storage space by 2025 would require some heavy work and commented that a more efficient grid would mean less waste, faster response to potential negative prices higher capacity utilization of grid infrastructure. Whether the U. S.
By 2025, the grid will reach 35 GW, or some other number, and we should expect a large number of storage devices to be installed in the visible future.
Storage is a key tool to help solve many problems, while achieving the promise of a smarter, more resilient and more efficient grid, which itself is the key central nervous system of our society.
Energy storage promises to free us from the constraints of the last century, constantly balancing supply and demand in reality
Time and must be super
Adjust our grid size to achieve this.
It allows us to go from a big hammer to a knife in planning. Speakes-
Backman pointed out that this is the first time in the history of the grid, "You are essentially decoupling the time factor from the balance of supply and demand.
"If we can really understand the value of energy storage and take action accordingly, then this simple statement has a huge impact.