From the latest source by IEA (International Energy Agency), India may become the third world’s largest market by 2030 for utility-scale batteries, with an additional capacity likely to be increased by 9GW in the next 7 years. This will be supported by reducing the cost.
Solar PV with battery storage is more cost-effective than coal. The increase in the capacity of solar PV will uplift energy storage along with the rise in short-term flexibility. The government needs wind and solar PV projects to integrate their 5% of installed capacity storage to achieve this target.
The government stated if all the set targets are achieved on time, solar PV with battery storage would become the strong pillar of the country’s power grid by 2050. At the peak hours during daylight, the batteries will get charged and be ready to deliver the energy in the peak hours of the evening.
Worldwide, the cost of utility-scale batteries with a four-hour duration is expected to decline by $290/kWh in 2022 to $175/kWh in 2030,a 40% reduction. With the remarkable growth in battery storage, India has seen a sharp cost reduction.
The average, cost of a battery has declined from $1,400/kWh in 2010 to $140/kWh in 2023 due to the advancement of the technology in battery chemistry and manufacturing. The fastest declines in the cost of any energy technology.
China is the leading country in the battery storage market with an increase of 55% in 2023 followed by The US, doubling year after year with over 8GW in 2023. On the other hand, the installed battery storage capacity in The European Union has shown growth of 70% in 2023 with an annual addition of likely 6 GW. As per the recent reports, India with its financial and targeted energy storage supports has the potential to become another major storage market for batteries.
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