Old Rocks
Diamond Member
Batteries are becoming a major part of California's grid, replacing expensive gas peaker plants. And the cost of the batteries continues to decline as the cost of solar does the same. A win-win for all.
"A few days ago, the electric grid in California hit a new milestone: At 7pm on March 29, batteries provided 12.3 gigawatts of power—roughly as much as six Hoover Dams, or around 43% of the total demand on the grid.
Nearly all of that battery storage was built in the last five years. “Until 2020 or 2021, battery storage was still quite expensive, but we’ve seen huge price drops over the last few years,” says Nicolas Fulghum, senior energy and climate data analyst at Ember, a global energy think tank. When it’s paired with solar power, it can “bring some of that excess generation in the middle of the day to where it’s really needed, which is during the peak demand in the evening and morning,” he says.
The cost of batteries has dropped 99% over the last three decades. Over the last few years alone, the cost fell by about a third. The cost of solar panels has also fallen by more than 90%. By 2024, new solar projects were an average of 41% cheaper than fossil fuel alternatives.
By using batteries to make use of extra solar power in the middle of the day in the evening, California’s grid, called CAISO, can rely less both on energy imported from other states as well as “peaker” gas plants that are used to meet peak demand. Those gas plants “are usually quite expensive,” says Fulghum. “And batteries can reduce the impact of those high power prices during that time, especially when you have a heat wave like we had a few weeks ago. That’s where they’re most effective at keeping prices down.” Gas electricity generation in the state is responsible for around 30 to 40 million metric tons of CO2 emissions a year. Around half of the peaker plants are in low-income communities of color, where the air pollution contributes to health problems like asthma."
"A few days ago, the electric grid in California hit a new milestone: At 7pm on March 29, batteries provided 12.3 gigawatts of power—roughly as much as six Hoover Dams, or around 43% of the total demand on the grid.
Nearly all of that battery storage was built in the last five years. “Until 2020 or 2021, battery storage was still quite expensive, but we’ve seen huge price drops over the last few years,” says Nicolas Fulghum, senior energy and climate data analyst at Ember, a global energy think tank. When it’s paired with solar power, it can “bring some of that excess generation in the middle of the day to where it’s really needed, which is during the peak demand in the evening and morning,” he says.
The cost of batteries has dropped 99% over the last three decades. Over the last few years alone, the cost fell by about a third. The cost of solar panels has also fallen by more than 90%. By 2024, new solar projects were an average of 41% cheaper than fossil fuel alternatives.
By using batteries to make use of extra solar power in the middle of the day in the evening, California’s grid, called CAISO, can rely less both on energy imported from other states as well as “peaker” gas plants that are used to meet peak demand. Those gas plants “are usually quite expensive,” says Fulghum. “And batteries can reduce the impact of those high power prices during that time, especially when you have a heat wave like we had a few weeks ago. That’s where they’re most effective at keeping prices down.” Gas electricity generation in the state is responsible for around 30 to 40 million metric tons of CO2 emissions a year. Around half of the peaker plants are in low-income communities of color, where the air pollution contributes to health problems like asthma."