U.S. utility-scale battery storage costs dropped thousands of dollars per kWh between 2015-2018
A new report from the Energy Information Administration (EIA) shows that the average energy capacity costs of utility-scale battery storage for the United States has been in a major downward spiral, dropping from $2,152 per kilowatt hour (kWh) in 2015 to $625/kWh in 2018.
That is a nearly 70 percent price drop in just three years.
Granted, the specifics vary region by region. From 2013 to 2018, the average utility-scale battery costs ranged from $1,946 kWh in the PJM Interconnection (PJM), covering 13 eastern and midwestern states and the District of Columbia, to the low point of $947/kWh in Hawaii. The electric system is divided under the management of various independent system operators and regional transmission organizations.
Another point worth noting is the amount of capacity being deployed. At the end of 2019, the U.S. had 869 MW of installed battery power capacity — the total amount of power a battery could provide — and 1,236 megawatt hours (MWh) of battery energy capacity, referring to the total amount of energy a battery could store. These systems store electricity produced by generators or the grid and redistribute the power later as needed.
In 2019 alone, the United States added 152 MW of battery storage capacity. Up through July 2020, it has already gained another 301 MW for the year. Further, EIA expects battery storage to grow by more than 6,900 MW over the coming years, as large battery storage systems are more often paired with renewable energy power plants.
