The cost of lithium-ion batteries is falling faster than wind power and photovoltaics
Bloomberg New Energy Finance, based on data analysis of more than 7,000 projects around the world, since the first half of 2018, the benchmark average energy cost (LCOE) of lithium-ion batteries has fallen by 35% over the past year, reaching per MWh 187 dollars. In the past year, the LCOE of offshore wind power has dropped by 24% to less than US$100 per MWh (approximately US$220 per MWh five years ago); the LCOE of onshore wind power and solar photovoltaic power have fallen respectively 10% and 18%, respectively, reached US$50 and US$57 per MWh (projects started in early 2019). It can be seen that the decline in the cost of lithium-ion batteries exceeds the decline in the LCOE of solar photovoltaic and wind power.
Since 2012, based on historical data, the LCOE of lithium-ion battery energy storage systems configured to provide 4-hour grid power supply (standard requirements for grid services) has dropped by 74% . In contrast, since 2010, the LCOE per MWh of onshore wind power, solar photovoltaic and offshore wind power have fallen by 49%, 84% and 56%, respectively.