Large battery storage systems, like the Tesla Megapack shown here, can help utilities improve the efficiency and reliability of the nation’s electric grid.
Tesla
If the status of your smartphone battery occupies a large share of your daily thoughts, just wait. The battery boom is coming.
Innovators are racing to make batteries that are cheaper, better and smaller. Some are even developing washable and bendable batteries to heat your gloves or be sewn into athletic wear to help track your exercise routine. The booming electric vehicle market is fueling dramatic advancements in battery technology, and electric utilities are using massive battery systems to make power delivery more reliable.
Utility-scale battery systems, like the Tesla Megapack, can smooth-out voltage and frequency differences that affect power quality. These systems also help integrate intermittent renewable energy sources into the power grid by storing excess solar and wind energy produced during the day and making it available for use at night.
The U.S. Energy Information Administration (EIA) reports that utility-scale battery capacity jumped 35% in 2020 and has tripled in the past five years. The agency predicts that by 2023, electric utilities will have 10 times the battery capacity they had in 2019. Much of that increase comes from battery systems located near large solar projects.
Analysts say the value of the world battery market already exceeds $100 billion, and they project it will grow more than 10% annually over the next five years. In the U.S. alone, 13 electric vehicle battery manufacturing plants are expected to open in the next five years.
And the best news of all? This cycle of innovation is cutting battery costs for consumers. The price of the most popular type of rechargeable battery is down more than 90% from what it was just 10 years ago.