As the penetration of solar energy in the grid rises, grid-level energy storage becomes critical. Storage solutions provide the flexibility that transmission systems need to accommodate the variability of the wind and the sun. The good news is that, much like the prices of solar panels and wind turbines in the past decade, battery prices are declining rapidly. The average price of a lithium-ion battery pack is down to US$209/kilowatt-hour, and the prices are set to fall below US$100/kWh by 2025, according to Bloomberg New Energy Finance (BNEF).
Masdar is playing an important role in developing storage solutions as part of its commitment to help commercialize advanced clean technologies. Notable examples include the Gemasolar concentrated solar power (CSP) project in Spain, the first commercial-scale renewable energy project in the world to use molten salt thermal storage. We have also just launched the Batwind smart battery storage solution in Scotland, the first in the world to be connected to an offshore wind farm.