Energy storage experiences a growth thanks to lithium-ion batteries price falls of almost 4 times since 2010. Worldwide players in the sector are raising their battery production capacity to satisfy greater EV and power applications market demand. According to the Global research institute McKinsey & Company, the fall in prices has led to a change in energy storage’s uses in the market from merely grid balancing to providing an alternative to conventional power generators, and aiding the renewable energy sources. Storage is more and more attractive to commercial customers and transforms entirely the energy markets. It is believed, that in the near future consumers will be able to completely abandon the grids by relying on solar plus storage and an electrical generator.
While cheaper storage costs are good for customers, they will present a challenge for utilities which will face the risk of load loss. Hawaii and Australia are examples of advanced storage markets where customers who combine solar and storage meet their energy demands around 80-90% of the time.