The U.S. Department of Energy (DOE) recently took a significant step forward by releasing a draft Energy Storage Strategy and Roadmap, inviting public comment until February 3. This new strategy aims to revamp the 2020 Energy Storage Grand Challenge to keep pace with technological advancements and the increased deployment of energy storage systems. The ultimate goal is to drive cost reductions in long-duration storage, targeting an ambitious $0.05/kWh, diversify the U.S. energy storage portfolio, which currently relies heavily on lithium-ion batteries, and improve the resilience of the supply chain.
The Need for Diversification in Energy Storage
Projections for New Storage Capacity Additions
According to the U.S. Energy Information Administration, new storage capacity additions are expected to outpace wind, nuclear, and fossil capacities by 2024. Currently, lithium-ion batteries account for over 95% of U.S. storage deployments, underscoring the urgent need for more diverse storage technologies to enhance supply chain strength. The global oversupply of battery materials has pushed prices down, but it also exposes vulnerabilities due to heavy dependence on Chinese suppliers. In a move to counter this risk, the Biden administration has increased the import tariff on Chinese-made lithium-ion batteries, with a 25% tariff slated to extend to non-electric vehicle batteries by 2026.
Diversifying energy storage technologies can mitigate such supply chain vulnerabilities. The roadmap laid out by the DOE emphasizes the need to enhance the U.S. manufacturing sector’s capabilities and to invest in research focused on next-generation storage technologies. This approach aims not only to achieve cost-competitiveness but also to reduce dependence on global suppliers. Without considerable innovation, cost analyses indicate that non-lithium technologies for long-duration storage may struggle to meet the DOE’s 2030 cost objectives.
Strategies for Reshoring and Scaling U.S. Manufacturing
A central element of the DOE’s roadmap is the support for reshoring and scaling U.S. manufacturing of energy storage technologies. The strategy acknowledges the importance of evaluating and utilizing new domestically-sourced materials to bolster the energy storage industry. This move could help reduce the reliance on foreign suppliers and fortify the supply chain. Strategic investments in the research and development of these new materials and technologies are deemed essential for achieving competitive pricing and technological advancements needed for long-duration storage solutions.
To foster innovation, the roadmap encourages a comprehensive evaluation of emerging storage technologies to ensure their feasibility. Identifying seven key use cases, ranging from enhanced power quality and reliability to mass electrification, the strategy provides a framework for assessing the suitability and performance of various storage technologies in different markets. These use cases offer benchmarks for technological readiness and help prioritize high-value applications, driving forward the adoption of diverse, effective energy storage solutions.
Key Focus Areas for the DOE
Strategic and High-Value Applications
In advancing the objectives laid out in the roadmap, the DOE’s focus on strategic, high-value applications emerges as a critical area. This includes refining cost and valuation models to accurately reflect the benefits and costs of different energy storage technologies. Creating compensation mechanisms appropriate for each technology is also highlighted as essential, ensuring that diverse storage solutions are recognized and rewarded in the marketplace. By concentrating on applications with the highest strategic value, the DOE aims to optimize the deployment and impact of varied energy storage technologies.
The strategy calls for increased engagement and dissemination of unbiased information to key stakeholders such as utilities, public commissions, and grid operators. Raising awareness about the benefits and suitability of different storage technologies can drive wider adoption and integration, ultimately supporting the transition to a more resilient and diversified energy storage infrastructure. This education and engagement effort is fundamental in overcoming barriers to the deployment of newer, non-lithium storage technologies, promoting a more robust energy ecosystem.
Accelerating Cost-Effective Deployment
The U.S. Department of Energy (DOE) has recently made a pivotal move by unveiling a draft Energy Storage Strategy and Roadmap, and they are currently seeking public feedback until February 3. This fresh strategy is designed to update the 2020 Energy Storage Grand Challenge to align with recent technological advancements and the growing implementation of energy storage systems. The primary objectives include achieving significant cost reductions in long-duration storage, with a target of reaching $0.05 per kilowatt-hour (kWh). Moreover, the strategy aims to diversify the U.S. energy storage portfolio, which is presently dominated by lithium-ion batteries, and to enhance the resilience and reliability of the supply chain. The DOE’s new initiative underscores the necessity of adapting to rapid changes in energy technology and addressing the critical need for more varied and affordable storage solutions. By inviting public input, the DOE facilitates a collaborative approach, ensuring that diverse perspectives are considered in shaping the future of the nation’s energy storage landscape.
