Stationary storage within battery-enabled storage systems (BESS) would witness significant growth over the next ten years. This growth will be led by lithium-ion technology as battery prices decline at an average 6% annually between 2018-30, according to a recent report by India-based consultancy firm Praxis Global Alliance.
The report authors made a reference to IEA’s projections that India would lead the battery storage market and contribute 35% of the total global battery deployment for energy storage by 2040. The Indian stationary storage requirement is expected to grow nine times at 22% annually during FY2022-32, as per a report by India Smart Grid Forum. The key factors driving this growth are robust solar energy generation targets and end-user demand towards green energy transition.
The Praxis report projects lithium-ion technology to lead the Indian battery energy storage systems market by 2030 due to a decline in battery prices for both lithium iron phosphate battery (LFP) and Lithium, Nickel, Cobalt, and Manganese (NCM) batteries, the two most commonly used lithium-ion battery technologies.
The overall battery price decline by 2030 is expected to be about US$ 80/kWh for LFP and about US$ 100/kWh for NCM. Further, the total cost of ownership (TCO) is expected to almost halve from current levels for both Lithium-ion battery technologies.
The cost economics of solar power and battery storage on account of the falling prices will result in the LFP batteries’ tariff for electricity to range between INR 7.0–INR 7.7 per kWh (US$ 0.09 – US$ 0.10) by 2030, while NCM battery tariffs are expected to range between INR 7.8–INR 8.7 per kWh (US$ 0.10 – US$ 0.12).
In their report, Praxis analysts also looked at the electricity storage technologies used globally and the application of BESS. They suggested that utility-scale and end-consumer models existing globally for battery storage could be replicated in India as battery prices decline. The use case for commercial and industrial consumers to replace diesel gensets is already available today.
Aryaman Tandon, Managing Partner and Co-Founder, Praxis Global Alliance, said, “Battery storage would lead India’s march towards net-zero targets in this decade, with global battery prices declining significantly. The improving economics with a declining total cost of ownership (TCO) and favorable government policies will result in increasing battery storage manufacturing and adoption in India.”
Savio Monteiro, Senior Vice President, Energy, Oil & Gas and Utilities, Praxis Global Alliance, said, “The decline in Lithium-ion battery storage prices over the next few years would make green energy affordable at both residential, commercial & industrial levels as well as at grid level and has the potential to replace fossil fuels significantly. We would witness increasing use cases and newer business models evolving as the overall battery storage cost declines over the next ten years.”
This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: editors@pv-magazine.com.
Mankind jumped on the Polluting Fossil and Nuclear “bandwagons” with thinking ahead… now mankibd faces the wrath of Pollution.
Now, the use of Lithium Batteries for Energy Storage is headed in the same direction… WHO CARES ABOUT THE POLLUTING TOXIC WASTE DEAD BATTERIES LEAVE BEHIND EVERY 3-5 YEARS…
WELL DONE… YOU/WE HAVE LEARNT… NOTHING…😭😭😭😭