Energy Storage

With the falling costs of renewable power generation technologies, the focus is increasingly shifting to the next stage of the energy transition. This leading to a shift in emphasis towards an energy system approach that is looking at how to integrate different technologies and sectors in order to minimize the cost of the energy transition where variable renewables and electric vehicles will play an increasing role.

This shift in dynamic as the energy transition accelerates has started to bring into the limelight a number of technologies, market design changes, new business models and “systems thinking” at the energy sector level, that will be required, or become economic, in this second stage of the energy transition. The role of battery energy storage systems (BESS) for stationary and transport applications is therefore gaining prominence.

IRENA is tracking the current costs and performance of these BESS and also how the value of these systems in different applications (e.g., increasing self-consumption of rooftop solar PV, the provision of grid services such as frequency regulation or ramping needs, as well as peak power demand shaving in industry, etc.) and markets around the world is likely to evolve over time.