IEA Forecasts Sharp Drop in Battery Costs to Drive Renewable Energy Transition

The International Energy Agency (IEA) predicts a significant drop in battery costs for energy storage, which will accelerate the global transition to renewable energy sources. While renewables are already cheaper than coal and gas, they can be intermittent, requiring energy storage for reliability. The IEA forecasts a 40% reduction in battery costs by 2030, making solar PV and batteries competitive with new coal plants in India and cheaper than new coal in China and gas-fired power in the United States.

Cheaper lithium iron phosphate batteries are becoming more prevalent, with sodium-ion batteries expected to play a larger role in energy storage. The global energy storage market doubled last year, with batteries expected to account for 90% of the growth by 2030. This cost reduction will also benefit off-grid populations, reducing electricity costs for mini-grids with solar PV and batteries by nearly half by 2030.

Source: Reuters