Cost Projections for Utility-Scale Battery Storage: 2025 Update

Summary

The rapidly evolving costs of battery storage make it challenging to accurately project future costs for utility-scale lithium-ion systems, which are crucial for energy capacity planning. The National Renewable Energy Laboratory (NREL) addressed this by developing updated cost and performance projections, specifically for 4-hour duration battery systems, leveraging recent literature and a bottom-up cost model. This work, completed in early 2025, provides low, mid, and high cost estimates through 2050, showing significant projected cost reductions and serving as a critical input for energy system modeling.

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