Lithium-ion’s market share within BESS will peak in 2024, according to analysts Rho Motion. In its Q3 2024 Battery Energy Stationary Storage Quarterly Outlook, it said the world saw a 50% year-on-year increase in energy storage integration to 78GWh in the first half of 2024. And 74% of that new capacity ended operation on the grid side, over 35GWh of it in China.
There were also strong grid developments in the US and Canada in the first half, with 16GWh entering operation, an increase of 172% year-on-year.
In their presentation, the Rho analysts said:
- 2024 looks likely to become the peak year for lithium-ion market share within BESS, set to reach 92%
- LFP is set to continue to dominate stationary storage
- alternative technologies will start to be deployed at greater volumes
- sodium-ion and vanadium flow batteries are the most advanced of the alternatives, deployed almost entirely in China
- technologies like zinc-flow and metal-air have potential for longer duration
- zinc-ion can be used for high power applications and UPS.
ESS system prices have been dropping since last year, Rho said. In Q2 2024, the weighted average price of all the projects it has been monitoring is $109/KWh. That is a 43% decrease year-on-year, it said. The highest prices are seen on small projects with specific design requirements.
Image: Battery energy stationary storage outlook. Rho Motion
