Bloomberg Forecasts Another Large Drop in Battery Energy Storage Prices

Dec. 4, 2019
BloombergNEF (BNEF) delivered good news this week for microgrid projects that plan to incorporate storage (which are many). Battery energy storage prices are set to take another big dive.

BloombergNEF (BNEF) delivered good news this week for microgrid projects that plan to incorporate storage (which are many). Battery energy storage prices are set to take another big dive.

BNEF’s 2019 Battery Price Survey forecasts that the average price for battery energy storage will be close to $100/kWh by 2023, down from $156/kWh this year.

This follows an 87% price drop since 2010 when prices were about $1,100/kWh in real terms.

A combination of factors continue to drive down costs: new pack designs, falling manufacturing costs, order size, growth in battery electric vehicle sales and the continued penetration of high energy density cathodes. 

Falling prices and expanding market share go hand in hand in BNEF’s analysis, which finds cumulative demand for energy storage batteries reaching 2 TWh in 2024. 

“According to our forecasts, by 2030 the battery market will be worth $116 billion annually, and this doesn’t include investment in the supply chain,” said James Frith, BNEF’s senior energy storage analyst and author of the report. 

The falling prices bode well for electrification efforts, especially in transportation. Around 2024 battery energy storage prices will be so low that electric vehicles will start to reach price parity with conventional vehicles in some regions, according to BNEF.

Into the 2020s, prices will continue to decline as manufacturing becomes less expensive, new pack designs are introduced and supply chains change.

“Factory costs are falling thanks to improvements in manufacturing equipment and increased energy density at the cathode and cell level. The expansion of existing facilities also offers companies a lower-cost route to expand capacity,” said Logan Goldie-Scot, head of energy storage at BNEF.

While BNEF describes a clear path to $100/kWh, the research organization says the way ahead is murkier to get prices down to $61/kWh by 2030. The problem?  There are many paths the industry can pursue at that point, but it’s uncertain which will dominate.

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About the Author

Elisa Wood | Editor-in-Chief

Elisa Wood is an award-winning writer and editor who specializes in the energy industry. She is chief editor and co-founder of Microgrid Knowledge and serves as co-host of the publication’s popular conference series. She also co-founded, where she continues to lead a team of energy writers who produce content for energy companies and advocacy organizations.

She has been writing about energy for more than two decades and is published widely. Her work can be found in prominent energy business journals as well as mainstream publications. She has been quoted by NPR, the Wall Street Journal and other notable media outlets.

“For an especially readable voice in the industry, the most consistent interpreter across these years has been the energy journalist Elisa Wood, whose Microgrid Knowledge (and conference) has aggregated more stories better than any other feed of its time,” wrote Malcolm McCullough, in the book, Downtime on the Microgrid, published by MIT Press in 2020.

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