The Biggest Challenge for Net-zero Norms is Energy Storage Systems: Report

A recent report from BofA Global Research emphasises that Battery Energy Storage Systems (BESS) represent the greatest challenge in achieving net-zero emissions by 2050. The shift to a net-zero emission future requires a comprehensive transformation of energy systems, moving away from fossil fuels and toward renewable sources like solar, wind, and hydroelectric power. However, the intermittent nature of these renewable energy sources presents significant obstacles.

For example, solar power generation relies on sunlight, which means no energy is generated during the night and output is diminished on cloudy days. Similarly, wind power generation fluctuates based on wind speed, leading to variations in the amount of power produced. Unlike fossil fuel power plants, solar and wind energy systems cannot be instantly adjusted to meet fluctuating power demands, which can lead to grid instability.

The report highlighted the importance of energy storage systems, such as batteries, in addressing these challenges. These systems are vital for ensuring grid stability, balancing supply and demand, and optimising the use of renewable energy. Also, they play a key role in reducing dependence on fossil fuel-based backup power sources.

The International Energy Agency (IEA) has set a target to triple global renewable energy capacity by 2030. This goal, which aims to boost capacity from 4,244 GW in 2023 to 10,000 GW by 2030, will require advanced energy solutions, such as Battery Energy Storage Systems (BESS), to effectively manage the intermittency of solar and wind power.

The development of Battery Energy Storage Systems (BESS) encounters significant challenges, particularly in terms of raw materials and recycling. Essential materials like lithium, cobalt, and nickel are crucial for battery production, and ensuring a stable supply of these resources is a growing concern. Both the EU and the US rely heavily on a small group of suppliers, highlighting the need to diversify supply chains to mitigate potential risks.