In a world that is becoming increasingly aware about climate change, the surge for renewable energy over the past two decades continues to increase. Just a few years ago, wind and solar technologies that were new and expensive are now the key to cost-competitive low carbon energy solutions. Finding cost-effective storage to keep up with the demands for renewable energy has become the next big challenge, and batteries have become the solution. Large battery installations are being built around the world, and they might end up in your neighborhood.
Batteries Just Got Cheaper
Batteries offer a viable solution for storing renewable energy, and fortunately—over the last year—the price of lithium-ion batteries has fallen by 35%. As the need for batteries increases, the cost of batteries continues to drop. This means it will be more cost efficient to store more solar and wind power. In addition, according to a new Bloomberg New Energy Finance report, the cost of wind in solar has dropped by approximately 10-24 percent since last year. This is a major win for renewable energy because it’s helping them compete with fossil fuel-generated power.
A Bright Future for Batteries
These new massive battery storage projects are already being built in places like Florida and California to replace natural gas, and many more are in the works. Florida Power & Light Company, a subsidiary of NextEra Energy, plans to build the world’s largest solar-powered battery. This new solar-powered battery will replace 1,638 megawatts (MW) of generating capacity of two aging natural gas power generating units with clean and renewable energy. This capacity will be equal to some 100 million iPhone batteries.
“This is a monumental milestone in realizing the full benefits of solar power and yet another example of how FPL is working hard to position Florida as the global gold standard for clean energy,” Eric Silagy, president and chief executive officer of FPL, said in a statement. This project is just one of the latest plans around the world for the development of these renewable generation systems.
The Increased Demand
The increased demand for battery storage is influenced by government policy. In states like California, Hawaii, Maryland, Massachusetts, Nevada, New Jersey and Oregon, they have adopted storage mandates and regulations. When businesses invest in these battery storage projects, federally a 30 percent Investment Tax Credit is available if it is associated with a renewable power generation project.
While the U.S. electric grid doesn’t necessarily need more storage now, with the increasing integration for wind, solar and other renewable energy resources, energy storage will become more important. If you’re looking to find solar power opportunities, Intersect Energy is here to help. Don’t forget to stay up to date with all the latest news in the renewable energy industry by following us on LinkedIn.