CEPS © 2019

Ten years after EULEX Key principles for future EU flagship initiatives on the rule of law
Policy Contribution

Low-cost batteries will not disrupt (all) energy utilities

by Fabio Genoese
05 October 2015

Low-cost batteries will not disrupt (all) energy utilities

Fabio Genoese

Download Publication

4707 Downloads

Author: Fabio Genoese

Series: CEPS Commentary  No of pp: 3

With the launch last April of an affordable lithium-ion home battery – the Powerwall – Tesla’s CEO Elon Musk is betting that batteries are going to become a mass market. This may very well become reality, but this commentary argues that one should not jump to the conclusion that this is the end of energy utilities. Similar to solar panels, batteries have high upfront costs. The massive deployment of solar was driven by dedicated policy support, in many cases without any kind of cost or volume control. There is no such thing for batteries. In the absence of financing programmes, the author finds that high upfront costs provide an unfavourable starting point for a disruptive development. But he notes that the fact that self-consumption of stored solar energy will soon pay for consumers represents a paradigm shift in the power industry, which should be seen as an opportunity, at least for first-movers.

Fabio Genoese is Research Fellow at CEPS.


About the Author


  • Author
    Fabio Genoese
    Fabio Genoese
Low-cost batteries will not disrupt (all) energy utilities
Download Publication

4707 Downloads