Technological Progress Improves Energy Storage Performance And Competitiveness

1. Battery Technology Development

 

Battery technology is the core of battery energy storage systems. In recent years, lithium-ion battery technology has continued to advance and costs have continued to decline. According to the International Energy Agency (IEA), the price of dominant lithium-ion batteries (cells and rechargeable batteries) has dropped from about $690/kWh (€635/kWh) in 2014 to less than $140/kWh (€129/kWh) in 2023, an average annual decline of about 15%. It is expected that by 2030, the cost of large-scale battery energy storage will drop by about 30% and the cost of small-scale battery energy storage will drop by 21%.

 

In addition to cost reduction, battery performance such as energy density, cycle life, and safety is also constantly improving. For example, companies such as BYD have achieved remarkable results in battery technology research and development, and their products have a high market share in the European market. BYD's share of the European battery energy storage market reached 30% in the first half of 2024. Its battery products have advantages such as high energy density and long cycle life, which can meet the needs of different application scenarios.