Capturing the full value of energy storage

Published onMarch 26, 2020

The International Renewable Energy Agency (IRENA) has attempted to define the value of energy storage in a bid to nudge policymakers into introducing financial rewards which drive deployment of the technology and hence accelerate the energy transition. The multilateral body’s Electricity Storage Valuation Framework (ESVF) attempts to address the issue of “missing money”, which occurs when the value of energy storage is not recognized sufficiently for investors to get projects off the ground. The high cost of large scale energy storage facilities, notwithstanding advances made with lithium-ion systems, makes the need to recognize the value such installations can offer more urgent, although IRENA predicts total installed costs could fall 50-60% by 2030 if manufacturing can be optimized and the volume of raw materials required reduced.