Steel Tariffs May Hurt Growing Energy Storage Market

steel

The burgeoning battery-storage industry may become the latest to feel the sting of President Donald Trump’s tariffs on steel and aluminum.

Prices for lithium-ion battery packs dropped 24 percent last year as it became cheaper to make them, according to data from Bloomberg New Energy Finance. But steel tariffs threaten to increase battery-installation costs by as much as 3 percent. (The batteries typically are protected with structures made of metal.)

“The tariffs could slow down some of the aggressive cost declines,” Ray Hohenstein, market applications director at energy storage firm Fluence Energy LLC, said in an interview Wednesday at Infocast’s Solar Power Finance & Investment Summit in San Diego, California.

To be sure, that shouldn’t have much lasting impact on the industry as other manufacturing costs decrease, Kelly Speakes-Backman, chief executive officer of the Energy Storage Association, said in a phone interview Wednesday. And there may be a workaround: Concrete, which features in the shipping-container-like structures that protect batteries in larger projects, could be used for smaller battery packs.

©2018 Bloomberg News

Lead image credit: CC0 Creative Commons | Pixabay

Untitled Document

Recent Articles

Largest Cherokee County wind farm now under construction

After a 23-year wind farm construction hiatus, work on a 2nd Cherokee County wind farm has begun. Developed...

Nine solar projects go live in Georgia

Duke Energy Renewables, a subsidiary of Duke Energy, announced that nine solar projects developed with SolA...

Can Italy strike twice?

Italy’s National Energy Strategy aims to increase wind and solar power’s share of gross final energy consum...

Lekela reaches financial close for its West Bakr Wind project

Lekela announced that it has reached financial close on its first wind project in Egypt, West Bakr Win...

Bernie Sanders’ ‘Green New Deal’ aims to have renewables power homes by 2030

Bernie Sanders wants renewable energy to power U.S. homes and vehicles by 2030 -- and he wants to do it by ...

EVENTS

There is no current content available.

Copyright 2018 Bloomberg

PAST MAGAZINE ISSUE

05/01/2016
Volume 19, Issue 6

STAY CONNECTED

To register for our free
e-Newsletters, subscribe today: