The scale of the reduction suggests that in addition to the falling cost of batteries—BNEF’s recent Lithium-ion Battery Price Survey found that battery pack prices fell 20% year-on-year to 2024, again the biggest drop recorded to date—energy storage system providers are working on cost reduction in other areas, Kikuma said.
A growing industry trend towards larger battery cell sizes and higher energy density containers is contributing significantly to falling battery energy storage system (BESS) costs.
According to BloombergNEF’s recently published Energy Storage System Cost Survey 2024, the prices of turnkey energy storage systems fell 40% year-on-year from 2023 to a global average of US$165/kWh. The research firm said this was the highest annual drop since its survey launched in 2017.
Although we have seen cell sizes and DC block energy density continue to increase—Hithium for example has announced, although not yet mass produced, 1,000Ah+ cells and EVE Energy has begun mass production of 628Ah cells —there may be some limitations to pursuing bigger and more energy dense solutions on a similar trajectory going forward.
Our standardized photovoltaic container and energy storage products are engineered for reliability, safety, and easy deployment. All systems include comprehensive monitoring and control systems with remote management capabilities.
Trend towards larger battery cell sizes and higher energy density containers is contributing significantly to falling BESS costs.
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Trend towards larger battery cell sizes and higher energy density containers is contributing significantly to falling BESS costs.
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BNEF analyst Isshu Kikuma discusses trends and market dynamics impacting the cost of energy storage in 2024 with ESN Premium.
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