Are lithium-ion batteries worth it?

Fluctuating solar and wind power require lots of energy storage, and lithium-ion batteries seem like the obvious choice—but they are far too expensive to play a major role. A pair of 500-foot smokestacks rise from a natural-gas power plant on the harbor of Moss Landing, California, casting an industrial pall over the pretty seaside town.

Could California be the world's largest lithium-ion battery project?

If state regulators sign off, however, it could be the site of the world’s largest lithium-ion battery project by late 2020, helping to balance fluctuating wind and solar energy on the California grid.

Will California build a bigger lithium-ion storage system?

The California projects are among a growing number of efforts around the world, including Tesla’s 100-megawatt battery array in South Australia, to build ever larger lithium-ion storage systems as prices decline and renewable generation increases.

Is lithium-ion technology too expensive?

Not only is lithium-ion technology too expensive for this role, but limited battery life means it’s not well suited to filling gaps during the days, weeks, and even months when wind and solar generation flags. This problem is particularly acute in California, where both wind and solar fall off precipitously during the fall and winter months.

Is lithium iron phosphate the future of energy storage?

Technology-wise, BloombergNEF expects lithium iron phosphate (LFP) to remain the dominant chemistry for energy storage through 2035, largely due to its lower cost and higher cycle life compared to nickel-based lithium-ion battery chemistries.

Will California's new lithium-ion battery projects fill a peaker role?

This peaker role is precisely the one that most of the new and forthcoming lithium-ion battery projects are designed to fill. Indeed, the California storage projects could eventually replace three natural-gas facilities in the region, two of which are peaker plants. But much beyond this role, batteries run into real problems.