A steep drop in the price of lithium, the key component for batteries, down 30 percent compared to last month and 80 percent year-on-year, promises to boost the government’s ability to free up more grid capacity through greater installation of energy-storage units.

The plunge in the cost of battery production, a sector dominated by China with a global market share of over 50 percent, will certainly enhance a new RES plan being prepared by the Greek energy ministry. Its details are expected to be announced within the first two months of 2024.

Energy minister Thodoris Skylakakis will be able to plan more ambitiously for the development of roof-mounted solar panels, solar farms and incorporation of batteries behind the meter to such projects.

The new RES plan will include, as a key feature, a section promoting the availability of low-cost renewable energy to industry through bilateral contracts.

Lithium prices have fallen to 97,000 yuan per ton, down from 300,000 yuan in July and 500,000 yuan in January. The price of a lithium battery has dropped to an all-time low, close to 139 US dollars per kWh, according to a BloombergNEF (BNEF) survey published in November.

Several months ago, the Greek energy ministry, driven by the continual drop in battery prices, halved its energy-storage investment support offered through auction by RAAEY, the Regulatory Authority for Energy, Environment, and Water, to 100,000 euros per MW at a second auction. Support of 200,000 euros per MW had been offered at a first auction.

This reduced requirement for state investment support will enable the ministry to stage energy-storage auctions on a more regular basis, enhancing RES penetration around the country.