Energy Storage: An Essential Tool in the Utility Toolbox
As the cost of energy storage continues to decline, more and more utilities will turn to batteries. According to Bloomberg New Energy Finance, the levelized cost of energy for lithium-ion batteries configured to supply four hours of grid power — a standard requirement for many grid services — has fallen by 74 per cent since 2012. Costs for those batteries is projected to drop even further – by as much as 67 per cent by 2030, the National Renewable Energy Laboratory found in a recent study. Such a precipitous decline will only make storage a more valuable tool for utilities and others.
Already, energy storage is quickly becoming an essential tool in the toolbox of the energy industry - an elegant solution to handle multiple needs for both utilities and customers. Storage provides system reliability, allows for the integration of new renewable generation, and can even eliminate or slow the need for more costly electricity infrastructure, potentially saving customers money. At National Grid, we’re looking to own and deploy battery storage as an exciting new tool that allows us to ensure reliability, enhance capacity and deliver for our customers.