Battery storage is about to overtake global capacity of pumped hydro
Less than 7 years since the world’s first truly big battery was built, the capacity of battery storage around the world is expected to soon overtake much of the more established pumped hydro.
The milestone – expected to occur in 2025 – is notable because it shows that battery storage, often called an 'immature' technology, is showing exponential growth.
Predictions suggest that the average annual capacity addition rate of battery storage from now on is expected to be nearly as much as its cumulative capacity.
That, of course, means that it is playing a significant role in global power grids, as has been witnessed in California, Texas, South Australia and elsewhere in recent weeks and months.
This is particularly relevant in Australia, where the federal Coalition and conservative media consistently mock battery storage as immature and compare its usefulness to the “big prawn” or the “big banana”.
Capacity of course is one thing - storage duration is another.Most of the big batteries installed in Australia have been between one and two hours storage, mostly because their initial target market has been grid services.
New battery projects are being built with 4 hours storage, some with the specific task of shifting the output of plentiful rooftop solar to the evening peaks, while at least three battery projects in NSW are targeting 8 hours storage.
According to the most recent data from the Australian Energy Market Operator, there is more than 1.7 GW of battery storage capacity operating in the grid, and another 3.2 GW under construction.
There is another 4.4 GW of battery storage capacity soon to be developed and then another 75 GW in the pipeline.
Pumped hydro offers 8 to 12 hours of storage.It was rolled out in large numbers nearly half a century ago, often as back-up for nuclear power generators
Hydro projects have struggled in Australia because of huge construction costs. But storage and pumped hydro will have complimentary roles to play – batteries for flexibility and speed, hydro for longer storage requirements, like long periods of low wind and solar output.