In 2015, the battery storage industry had installed only a fraction of the gigawatt battery storage capacity in the entire US. That year, it set a bold target of adding 35 gigawatts by 2035 surpassed that goal a decade ago This year and then reached 40 gigawatts a few months later.
Costs are still falling, which may help maintain the pace of technology deployment. This year, battery prices for EVs and stationary storage fell again, reaching record lows Data from BloombergNEFBattery packs used specifically for grid storage saw prices decline faster than average; Their cost is 45% less than last year,
We’re starting to see what happens even on grids with very high battery capacities: in California And texasBatteries are already helping meet evening demand, reducing the need to run natural-gas plants. The result: a cleaner, more stable grid.
AI’s energy fund flow
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The AI boom has complex implications for our energy system, as we’ve covered in detail this year. Electricity demand is increasing: The volume of electricity utilities supplied to US data centers has increased by 22% this year and will be even higher double by 2030,
But there is at least one positive change emerging from AI’s impact on energy: It is driving renewed interest and investment in next-generation energy technologies.
In the near term, most of the energy needed for data centers, including those powering AI, will likely come from fossil fuels, especially new natural-gas power plants. But tech giants like Google, Microsoft and Meta aim to reduce their greenhouse-gas emissions, so they’re looking for alternatives.
meta signed an agreement in June with XGS Energy to purchase up to 150 MW of power from a geothermal plant. In October, Google signed an agreement that will help Reopen Duane Arnold Energy Center in IowaAlready closed nuclear power plants.
Geothermal and nuclear could be key parts of the grid of the future, because they can provide consistent electricity in a way that wind and solar cannot. Many new versions of the technology still have a long way to go, but more money and interest from big, powerful players can’t hurt.
