Lazard said energy storage is at a turning point and expects prices to fall, driving further innovation which will greatly expand the use of energy storage systems both on and off the power grid and increase the use of renewable energy.
The findings come from a study conducted by the bank of major energy storage technologies, both large-scale grid applications and small-scale residential ones, to compare the cost-effectiveness.
Lazard North American Power Group’s head Jonathan Mir said: “Energy storage system manufacturers and customers told us they expect to achieve significant price decreases over the next five to seven years.
“Falling prices should in turn drive wider deployment, and spur further innovation.”
Lazard said that even without subsidies some storage technologies are already cost-competitive with certain conventional alternatives, such as lithium-ion batteries for certain power grid support applications, while others are nearing being cost-competitive.
If industry projections materialise energy storage technologies could provide an alternative to conventional gas-fired peaking plants in certain areas.
However Lazard also said that although storage technology holds “great promise” alternative energy systems alone will not be capable of meeting total generational needs of a developed economy.
Lazard said the optimal solution for many regions of the world is to use complementary traditional and alternative energy resources in a diversified generation fleet.