[Asia Economy Reporter Park Byung-hee] It has been confirmed that the installation scale of large-capacity batteries for power storage in the United States has significantly increased this year since the inauguration of the Joe Biden administration.
Last year, the installation scale of large-capacity batteries was less than 1GW, but it is expected to increase sharply to 6GW this year, according to a report on the 21st (local time) by The Wall Street Journal (WSJ), citing S&P Global Market Intelligence. S&P Global Market Intelligence forecasted that 9GW will be newly installed next year.
The large-capacity battery market is rapidly expanding, benefiting from the Biden administration's eco-friendly energy policies. Since renewable energy sources such as solar and wind have time constraints on electricity production, batteries that can store the generated electricity are essential.
Not only the federal government but also state governments are gradually expanding eco-friendly policies. California passed a bill in 2018 to eliminate greenhouse gas emissions from power generation by 2045. According to the Energy Storage Association, at least eight states besides California, including New York, Virginia, and Nevada, have set mandates for storage devices or carbon emission reduction targets.
As technology advances, battery prices have also dropped significantly. According to BloombergNEF, the price of lithium-ion battery packs, which exceeded $1,200 per kilowatt-hour (kWh) in 2010, is only $132 per kWh this year.
The market size for large-capacity stationary batteries is estimated to grow from $1 billion last year to $13-14 billion by 2030.
Although prices of battery raw materials such as lithium are soaring, it is expected that government policy support will prevent this from becoming a major variable in the demand for large-capacity batteries. Steve Pfeifer, director at S&P Global Market Intelligence, said, "The rise in raw material prices will not affect battery demand," adding, "The increase in raw material prices can be offset by government tax incentives."
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