In order to achieve the EU’s climate goals, renewable energies are needed. Overall, global storage capacity must therefore be increased sixfold, with batteries playing a major role. Their costs have fallen by more than 90 percent in the last 15 years, as a current special report by the International Energy Agency (IEA) shows.
Drastic cost reduction
There has never been such a sharp decline in the cost of renewable energy technologies. This appears to be one step closer to achieving the EU climate target, pushing forward the use of renewable energies and reducing net greenhouse gas emissions by at least 55 percent by 2030. The fact is that lithium-ion batteries are not only used for smartphones, laptops and other consumer electronics devices, but also in the energy sector. According to the IEA report, this now accounts for over 90 percent of total battery demand. Also interesting: In 2023, the use of batteries in the energy sector increased by more than 130 percent. This is reflected in the global sales of electric vehicles (EVs): While only 3 million electric cars were sold in 2020, there were already 14 million in 2023.
Batteries for the electricity and transport sectors
IEA Executive Director Fatih Birol underlines how important batteries already are or will be, especially for the electricity and transport sectors. There are two pillars that can be used to reduce emissions in a targeted manner. “Batteries will form the foundation in both areas and play an irreplaceable role in expanding renewable energy and electrifying transport, while providing safe and sustainable energy for businesses and households.” At the COP28 climate summit in Dubai in December 2023, they decided participating countries: Renewable energy capacity is expected to triple by 2030, as well as energy efficiency increases of 50 percent. At the same time, everyone agreed that they wanted to move away from climate-damaging fossil fuels. What is all the more surprising is the fact that the ÖVP now wants to campaign at the EU level against the decision to end the combustion engine, which has long been decided, Trending Topics reported.
That’s why batteries are so important
While both solar and wind energy are green, they are also intermittent renewable energy sources. The output generated cannot be predicted 100 percent correctly. That’s why battery storage is crucial for smoothing the electricity supply. They can be used to capture and store excess electricity, for example when a lot is being produced. Let’s get back to the climate goal of tripling renewable energies by 2030: According to the IEA’s calculations, this requires 1,500 GW of energy storage, of which batteries can handle 1,200 GW. Battery technologies also enable people in developing countries to have increased access to electricity by using decentralized energy solutions such as solar home systems and mini-grids.
Declared Gamechangers
According to the IEA, total energy storage capacity worldwide must increase sixfold by 2030. Batteries are expected to cover 90 percent of this and pumped storage power plants will take over most of the remaining 10 percent. This is the only way Europe can remain competitive. “In the next few years, the combination of photovoltaics and batteries will be cheaper than new coal-fired power plants in China and gas-fired power plants in the United States. Batteries are changing the game before our eyes, says Dr. Birol from the IEA. The report shows that global battery production has more than tripled in the last three years. Most batteries were manufactured in China, while 40 percent of new batteries will be produced in the USA and the European Union in the future.
G-7 heads of state and government want to move away from coal
The G-7 also supports the plan to triple global renewable energy generation capacity by 2030 and this week also agreed on another global goal for energy storage: phasing out the use of coal-fired power plants by 2035 – without any curtailment. This means that there should be no transition phase in which the power plants are partially used. Only those countries that rely heavily on coal, such as Japan and Germany, should be given the opportunity to temporarily circumvent the deadline. They should set a timetable to end coal-fired power generation. The G-7 leaders’ goal is in line with the EU’s climate goals and helps slow the increase in global greenhouse gas emissions.
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