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Plunging Battery Prices Expected To Spur Renewable Energy Adoption

Lucas123 writes: Lithium-ion (Li-on) and flow battery prices are expected to drop by as much as 60% by 2020, making them far more affordable for storing power from distributed renewable energy systems, such as wind and solar, according to a recent report by Australia's Renewable Energy Agency (ARENA). The 130-page report (PDF) shows that Li-on batteries will drop from $550 per kilowatt hour (kWh) in 2014 to $200 per kWh by 2020; and flow battery prices will drop from $680 per kWh to $350 per kWh during the same time. Flow batteries and Li-ion batteries work well with intermittent energy sources such as solar panels and wind turbines because of their ability to be idle for long periods without losing a charge. Both battery technologies offer unique advantages in that they can easily be scaled to suit many applications and have high cycle efficiency, the ARENA report noted. Li-ion batteries more easily suit consumer market. Flow batteries, which are less adaptable for consumer use because they're typically too large, scale more easily because all that's needed to grow storage capacity is more electrolyte liquid; the hardware remains the same.

32 of 130 comments (clear)

  1. Yay for price drop by Tokolosh · · Score: 4, Insightful

    More importantly, will the cost drop? There is so much meddling in the market nowadays that you may pay less for things that are costing more to make, and vice versa.

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    1. Re: Yay for price drop by slack_justyb · · Score: 4, Interesting

      From the document, the major rationale for the expected price drop would be from an abundant supply of product. Not due to some new process that makes the product cheaper to build. So a lot of this is educated guessing. One that there are lot of new production coming on line for batteries. That's a true statement. Two, all of these new players will create a vast supply of batteries. That's a logical outcome that's typically true but not always. Three, this huge supply will drive prices down. Again that's the typical market assumption but it's not always a sure thing. So it is a one thing leads to another kind of paper. I don't disagree with some of the assumptions made, and the numbers seem conservative enough to not be in the realm of outlandish. So a pretty safe paper in terms of speculation, but not exactly hard truth so take with usual grain of salt here.

    2. Re:Yay for price drop by TWX · · Score: 2

      Generally in economies of scale, the greater the scale of production the less per-unit the cost to assemble, assuming that the manufacturing facilities are running efficiently and aren't idled due to a lack of orders.

      That's why Mr. Musk's "Gigafactory" is such a big deal; if quality batteries can be produced on a massive scale and for less money per-unit, suddenly it makes using batteries for general-purpose applications more affordable. You might see racks upon racks of lead-acid batteries providing infrastructure support for telco rooms be replaced with smaller, longer-lived Lithium-Ion batteries, you might find homes receive whole-house battery backups because they're relatively maintenance-free and are easier to work with than Group-27 batteries that look more at home under the hood of a car.

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  2. It's already happened; we're at $250/kWh now. by Zobeid · · Score: 4, Informative
    1. Re:It's already happened; we're at $250/kWh now. by thinkwaitfast · · Score: 2, Interesting

      I was looking at lipo's last night. Still over 4x the cost of lead acid. I got my batteries @ ~$100/kwh. That's roughly the cost at a few places I've looked: walmart, costco, golf cart and auto repair shops. And that's with lifespan et al factored in.

    2. Re:It's already happened; we're at $250/kWh now. by Spazmania · · Score: 2

      The only lead acids you're getting at that price are wet cell car batteries that are only good for starting a car. SLAs and gel cells suitable for deep cycle applications cost more than twice as much as you say.

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  3. Flow Batteries by myrdos2 · · Score: 4, Informative

    Had to look this one up! From the wikipedia:

    A flow battery, or redox flow battery (after reduction–oxidation), is a type of rechargeable battery where rechargeability is provided by two chemical components dissolved in liquids contained within the system and separated by a membrane.[1] Ion exchange (providing flow of electric current) occurs through the membrane while both liquids circulate in their own respective space.

    ... While it has technical advantages such as potentially separable liquid tanks and near unlimited longevity over most conventional rechargeables, current implementations are comparatively less powerful and require more sophisticated electronics.

    On the negative side, flow batteries are rather complicated in comparison with standard batteries as they may require pumps, sensors, control units and secondary containment vessels. The energy densities vary considerably but are, in general, rather low compared to portable batteries, such as the Li-ion.

    1. Re:Flow Batteries by fustakrakich · · Score: 2

      On the negative side, flow batteries are rather complicated in comparison with standard batteries as they may require pumps, sensors, control units and secondary containment vessels.

      Rube Goldberg reaches from the grave. For some reason people think complex means advanced.

      --
      “He’s not deformed, he’s just drunk!”
    2. Re:Flow Batteries by Firethorn · · Score: 2

      Rube Goldberg reaches from the grave. For some reason people think complex means advanced

      Rube was about unnecessary complexity. A lot of our refining of technology is indeed about reducing complexity, leading to more reliable products. For example, a GenIII nuclear plant is supposed to have 50% fewer valves than a GenII. What does getting rid of half your valves and something like 30% of your piping do? It means that there's a lot less stuff to break, and you can build the remaining stuff sturdier with the freed up space.

      To get back to the flow batteries - a steam power plant is hella complex compared to an internal combustion engine, but at that scale the complexity pays for itself with added efficiency.

      Same deal with flow batteries. While they're unlikely to make sense in a car, when you're looking at extending power production or covering gaps at a wind or solar farm, flow batteries start looking simpler than assembling and managing the pile of conventional batteries that would be necessary for the same capacity. After all, with the flow battery, while the 'terminals' might be complex as heck, expanding storage is almost as simple as putting in another tank of electrolyte. Not having to put in a building, install racking, move in and wire X hundreds or thousands of batteries.

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  4. Still a bad value by Anonymous Coward · · Score: 3, Interesting

    Lead acid 6 v golf cart battery with over 100 Ah of usable capacity, or 0.6 kWh of storage (ie: 200+ Ah actual capacity, you never drain a lead acid battery flat) : $90. Deep cycle (because it's for powering golf carts) means you actually CAN drain 50% or more of it without damaging the battery at all.

    That's $150 per kWh, and you can hop on over to Sam's Club and buy one or more of them tonight.

    If you have the space to deal with them, which if you're using them for home you likely do, lead acid battery tech is going to beat out lithium ion for a long time yet (past 2020 apparently!)

    1. Re:Still a bad value by cunniff · · Score: 5, Interesting

      Lead is cheap but you get what you pay for.

      First, lead-acid has a shelf life even if you do not discharge the battery - the lead plates sulfate over time, reducing capacity. It is only partially reversible by occasional special charge/discharge cycles. This shelf life is something like 3-5 years, depending on how much capacity you are willing to lose.

      Second, lead-acid self-discharges. This means, unless you use the battery very close in time to when you charge it, you've wasted some of the energy you put into it. Trickle-charging only makes this worse, since you will always be dropping energy into the battery without getting most of it out.

      Third, lead-acid discharge voltages are strongly impacted by the current at which you discharge them - look up the Peukert exponent for the golf cart batteries you were quoting - it will be over 1.2, and probably higher, meaning that high current discharge will drain the battery much faster than expected.

      Finally, even deep cycle lead-acid batteries are slowly degraded even by the 50% discharge you quote. It only takes a few hundred cycles for capacity to be diminished by double-digit percentages. This is caused by plate erosion.

      Existing lithium cells don't have a known shelf-life (they probably have one, but we don't know what it is) - it could be 10 years or more. They have expected 80% discharge cycle counts of *thousands* rather than hundreds. And their Peukert exponent is very close to 1.00 since they don't have the same variable internal resistance characteristics of lead-acid.

      I have first-hand experience of this - I have used all three of deep-cycle flooded, deep-cycle sealed (AGM), and now Lithium Iron Phosphate (LiFePO4) cells in my home-built electric vehicle conversions. My lead-acid shelf lives were right along with that 3-5 year expectations. The LiFePO4 cells are going on 2 years now with no measurable decrease in capacity.

    2. Re:Still a bad value by thinkwaitfast · · Score: 2, Interesting

      Existing lithium cells don't have a known shelf-life

      My laptop would beg to differ.

    3. Re:Still a bad value by cunniff · · Score: 2

      That's not because of shelf life. That's because of overcharge and/or over-discharge - laptop vendors tend to create charge/discharge profiles that abuse the cells in the interest of quoting more hours of operation per charge. If you were to detach your laptop's battery from all electronics (including a battery monitor / BMS) you would find that it retains its charge for months or even years.

  5. Bet u another battery tech will beat both in price by justcauseisjustthat · · Score: 3, Insightful

    I bet you another battery tech will beat both in price and performance, over the next 5 years battery tech is going to take off (it's already started) and what we use today will be primitive in comparison.

    Not to mention fusion will finally be feasible which will spin this whole discussion.

  6. Re:More batteries = more polution by unimacs · · Score: 2

    Natural gas explosions occur about every other day in the US and over 400 people die per year from carbon monoxide poisoning.

    Our existing sources of power and heat aren't exactly risk free.

  7. ROBOTS!!! by EmperorOfCanada · · Score: 3, Interesting

    When I am building robots my battery choices very much are the limiting factor in my designs and the final capabilities of the robot. I can go for big lumbering beasts with piles of lead acid. Or I can break the bank with enough lipo to keep a laptop factory running for a week. Or I can pair my design down until it is simply a toy. Other options are to make it sound like a garden tool and put some kind of gasoline motor in.

    But if I had a reasonably priced source of reasonably power dense batteries then my robots would improve proportionally. For this doesn't just increase the power available to my existing designs but it also reduces the overall costs of a robot. For instance the more efficient the motor or cost computer module, generally the higher the cost. But it would be great if I could slap in any old small motherboard, and use run of the mill DC motors instead of ultra cool brushless.

    Then whole other motor systems become possible. Linear motors, pneumatic systems, hydraulic systems, etc.

    So a revolution in batteries would precipitate a revolution in robots; real robots doing real jobs in the real world.

    1. Re:ROBOTS!!! by FranTaylor · · Score: 2

      real robots doing real jobs in the real world.

      apparently the software will just write and debug itself

      or maybe space aliens will write the code for us

      no way humans are gonna do it

  8. Re:Spontaneous combustion by kheldan · · Score: 2

    First of all, I want to know what I want to know, when I want to know it; please don't sit there and tell me what I want to know, OK? Secondly, since what I want in a vehicle doesn't exist yet, so what am I supposed to do?

    I've read through about the last 100 of your comments, and I've seen a trend. I'm not here to get in arguments just to get in an argument, so please don't, I'm not interested, OK? Thanks.

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  9. Re:kWh? by Maury+Markowitz · · Score: 2

    "how do I determine the Ah equivalent, which is what batteries are actually sized in"

    That's how lead-acid and other older technologies are actually sized in. Several reasons why. One is they have a slow decline in voltage during discharge, so over the entire cycle the voltage may vary perhaps 35%. Combined with that is the voltage sag. So for these batteries you have a wide span of curves.

    In contrast, lipos are *much* flatter. They hold their voltage until they're 90% discharged (or more) and then suddenly fall flat. They also don't have the same sort of sag curves. So you can generally get away with assuming the kWh and Ah are linear, and kWh is far easier to use in practice.

  10. Re:kWh? by Jerry+Atrick · · Score: 4, Insightful

    Properly calculated kWh has the voltage drop baked into the calculation, amp hours don't (and what would it even mean?). More simply though, kWh is a measure of energy stored, amp hours isn't without doing that time volts calculation. So kWh is a lot easier to compare different technologies with. We still regularly compare an online for like comparisons like phone batteries, where the voltage curves are similar.

  11. Electric Motorcycles by LionKimbro · · Score: 2

    I'm eagerly anticipating affordable electric motorcycles.

    I think Brammo and Zeros are rated at ~ 200-500 MPG equivalent?

    That's way better mileage than even a fully loaded (everybody standing) bus gets in peak hours.

    The problem with the electric motorcycles today is the price tag. The prices have dropped recently (from, say, $19,000 to $14,000, with ~$12,000 for very low end bikes that can't go very far,) but they need to go down further and increase in range.

  12. Re:If you want safety and long term reliability by Bob+the+Super+Hamste · · Score: 2

    Well the do have a higher self discharge rate but as far as ability to stand up to abuse and neglect they really are hard to beat.

    --
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  13. Re:Spontaneous combustion by thestuckmud · · Score: 4, Informative

    Uh... no.

    "Lipo" (lithium-polymer) batteries are subject to thermal runaway (exploding into flame) if abused. Plus they can be more vulnerable for reasons including the typically soft packaging (OTOH, cell phones are not often bursting into flames in people's pockets). Maybe you were thinking of lithium iron phosphate (LiFePO4) batteries, which have lower voltage and lower specific energy density, but are more robust?

    In any case, I thought *we* were discussing all sorts of batteries here, including a variety of lithium chemistries.

  14. Won't be necessary by sideslash · · Score: 2

    Who cares about cheap batteries in 2020. I read that fusion power will supply a veritable firehose of free power for the whole world, and solving the pesky remaining engineering challenges should only take about 15 years. :p

  15. Erm... by Solandri · · Score: 3, Insightful

    The 130-page report (PDF) shows that Li-on batteries will drop from $550 per kilowatt hour (kWh) in 2014 to $200 per kWh by 2020

    The going rate for residential electricity in the U.S. is about $0.11/kWh. So basically if these batteries charge/discharge once per day (as the case would be for solar), and you want the batteries to only add (say) 20% to the price of the generated electricity in order for it to remain cost-competitive (note: wind is nearly cost-competitive, solar is still about 2x-3x more expensive), then it currently takes $550 per kWh / ($0.11 per kWh * 20% * 365 cycles/yr) = 68.5 years for these batteries to pay for themselves, but by 2020 it will take 27.4 years. Yay progress?

    Unless the levelized price for renewable generation drops substantially below that of coal, I don't see how this will "spur renewable energy adoption" except for regions where electricity prices are substantially higher (e.g. Hawaii, $0.30/kWh)

    1. Re:Erm... by Anonymous Coward · · Score: 2, Insightful

      Coal is currently profitable because of heavy cost externalization.

      Namely pollution (The health costs and environmental damage come out of the public's pocket), and more recently the exploitative abuse/pension stealing of coal mine workers.

      Pay the real cost of coal and it's not so cheap.

    2. Re:Erm... by wchin · · Score: 2

      Tesla PowerPack is being sold at $250/kWh. It is most cost effective at shifting energy from the lowest cost time periods to the highest cost time periods (peak shaving) where the demand charges can be extreme. At the consumer pricing of near $350/kWh now, the costs for regions like Hawaii make sense already. There are also those willing to pay slightly more either in areas that are difficult to be on-grid or where the grid is unreliable.

    3. Re:Erm... by rch7 · · Score: 2

      You already can get them at around $250/kWh. By 2020 it will be $100/kWh. The study uses some hopelessly outdated data.

    4. Re:Erm... by whh3 · · Score: 2

      I wish that there was a standard method for "accounting" these externalities. Do companies that run coal mines or plants forecast or hedge against the possibility of future lawsuits related to pollution? If so, who determines that hedge amount? Are they buying insurance against these eventualities? If so, what do the actuarial tables say for such things. If we could at least quantify these externalities, we could start looking at the real cost of these things.

      Of course, that is not to say that these companies would eventually be subjected to these costs. We know that they won't be as long as coal and oil production are linked to the survival of states. But, sometimes seeing dollar amounts are more enticing for changing people's behavior than "long term health effects".

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  16. Re:Environmentally friendly and sustainable? by thestuckmud · · Score: 2

    How are batteries of environmentally friendly and sustainable?

    Batteries are an enabling technology that can store intermittently available renewable energy for convenient use. Think wind powered cars and solar street lights, both can be made practical through the use of battery storage.

  17. Re:kWh? by Firethorn · · Score: 2

    Why are articles citing battery sizes in kWh these days?

    Probably because it's a more useful metric, as it tells you the total *energy* in the battery without extra steps. To determine the Ah equivalent, you'd need to multiple by 1k, then divide by the battery's voltage. After all, to convert Ah into Wh, you multiply by the battery's voltage.

    quote the battery's size in kWh and you don't need to know the voltage(for the generic purposes of an article). Volts for extremely large battery packs are somewhat optional, after all, it all depends on how you wire them.

    --
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  18. Re:Bet u another battery tech will beat both in pr by thinkwaitfast · · Score: 2

    battery tech is going to take off

    Why? Batteries have been researched for hundreds of years and is limited to mixing chemicals with known electric potentials. Lipo's are 25 years old now and were the last of major significance.