Considered the most comprehensive analysis on the subject, the new IEA report shows that the cost of batteries has fallen by more than 90% over the past 15 years, among the fastest decreases ever seen in the clean energy sector. This has been driven in part by the expansion of the electric vehicle market, with sales rising from 3 million in 2020 to nearly 14 million in 2023. According to the IEA, battery deployment in the energy sector is expected to increase by more than 130 per cent year-on-year in 2023, adding a total of 42 gigawatts to the world’s electricity systems.
‘The electricity and transport sectors are two key pillars for bringing down emissions quickly enough to meet the targets agreed at COP28 and keep open the possibility of limiting global warming to 1.5°C,’ said Fatih Birol, IEA Executive Director.
Despite rapid progress, the IEA report states that battery deployment will still need to increase significantly between now and the end of the decade for the world to meet its energy and climate targets. Total energy storage capacity must increase six-fold by 2030 worldwide, with batteries accounting for 90 per cent of the growth and pumped hydro power for most of the rest.