Key Takeaways

Battery storage costs have declined 85% since 2010, driven by manufacturing scale and technology improvements. LCOS analysis reveals that lifetime and efficiency become increasingly important as capital costs fall.

Storage economics improve dramatically through multiple revenue streams: energy arbitrage, frequency regulation, capacity markets, and ancillary services. Systems accessing diverse markets have much better economics.

Well-designed policies can accelerate deployment and reduce costs through scale effects. The most effective frameworks combine financial incentives, market access, and regulatory reforms to address multiple barriers.

Storage transforms electricity markets by providing flexibility, enabling higher renewable penetration, and creating new market dynamics. Understanding these changes is crucial for investors and policymakers.