Global projected energy storage costs 2020-2035

This statistic displays a projection of the costs of energy storage worldwide from 2020 to 2035. In 2025, energy storage costs are expected to decrease to about 230 U.S. dollars per kilowatt hour. Energy storage is currently used heavily in the automotive industry.

Energy storage technology outlook

The cost of energy storage technologies are expected to gradually decrease from about an average of 250 U.S. dollars per kilowatt hour in 2020 to 200 U.S. dollars per kilowatt hour in 2035. Energy storage allows consumers to store the excess energy produced by renewable energy resources for later use. Panasonic and Tesla are expected to add some 35 gigawatt hours of battery capacity additions between 2015 and 2020 in the United States.

Currently, there are several types of energy storage technologies that can cater to different needs. For example, there are long-term storage technologies such as power to gas using methane or hydrogen as well as technology that allows the storage of cold or heat within aquifers and bedrock. However, in 2014, the vast majority of the world’s energy storage capacity was in the form of pumped hydroelectric power, a type of mechanical storage. Yet, battery technologies are gaining traction in the global market due to demand from electric vehicles and decreasing costs. Electric vehicles are expected to account for over 18,000 gigawatt hours of energy storage demand by 2020.