<
https://reneweconomy.com.au/watershed-moment-big-battery-storage-prices-hit-record-low-in-huge-china-auction/>
"The price for big battery storage modules have hit a new record low in the
latest giant auction in China, where more than 70 bidders competed for 25
gigawatt hours of capacity in what is being described as a “watershed moment”
for the industry.
Battery storage has already emerged as the most compelling energy storage
technology for grids scrambling to boost their dispatchable power capacities as
they add more wind and solar, and as ageing coal and gas plants prove less
capable to fill the gap when needed.
The technology has already delivered significant price reductions in recent
years, undermining the case for gas-fired generation, where prices have jumped
and delivery times for new projects have blown out because of supply chain
shortages.
The latest auction in China offered 25 gigawatt hours of capacity for lithium
iron phosphate (LFP) batteries over a range of storage periods – 1 hour, 2 hour
and 4 hours – and the results (the first time they have been broken down on
storage duration) have stunned even seasoned onlookers.
The knockout price was a bid of $US51.59/kWh for a four hour battery (the
average was $US59/kWh), which
Energy Storage News says represents a 30 per
cent drop from 2024 levels, and others side was a 15 per cent fall from recent
record lows.
Bidders included established majors such as CATL, BYD, Envision and Sungrow, as
well as newer players such as Ganfeng Lithium.
“The bid is being viewed as a watershed moment,” wrote
ESN.
“The 25 GWh tender is widely seen as a turning point for the Chinese storage
sector’s shift from policy-driven growth to a more sustainable, market-oriented
model. With system costs declining rapidly, LFP batteries are gaining traction
across grid, generation, and end-user segments.”
Marek Kubik, co-founder of US-based battery storage supplier Fluence, and now a
director at the Saudi-based halo project Neom, also described the auction
results as a new milestone, noting that the prices reflected a full energy
storage system, and not just cell prices. They do not, however, include civil
construction costs.
“These rapid and sustained ESS price falls will continue to have big
implications for other technologies aiming to compete with Lithium-ion’s
crown,” Kubik wrote on LinkedIn.
“They will also pull forward the economic tipping points for longer duration 8
hour to 10 hour systems needed to shore up ‘Round The Clock’ renewables use
cases, which disproportionately stand to benefit.”
That assessment follows new analysis that suggests the plunging cost of solar
PV and battery storage has opened up a new frontier in the transition to green
energy, with cities and industries around the world now able to access low
cost, 24-hour solar generation.
According to the UK-based energy think tank Ember, the combined cost of solar
and battery storage has fallen 22 per cent in the last year alone.
“This is a turning point in the clean energy transition,” says lead analyst
Kostansta Rangelova. “Around-the-clock solar is no longer just a technical
possibility and distant dream, but an economic reality."
Cheers,
*** Xanni ***
--
mailto:xanni@xanadu.net Andrew Pam
http://xanadu.com.au/ Chief Scientist, Xanadu
https://glasswings.com.au/ Partner, Glass Wings
https://sericyb.com.au/ Manager, Serious Cybernetics
