It costs ~$0.13/kWh to generate the electricity (which includes any battery costs), but $0.25-$0.50/kWh to deliver the energy across the grid.
The utilities get guaranteed profits from rate-basing all the grid stuff, but the generation side is a more competitive market.
Batteries could be used to greatly reduce grid costs by flattening peaks and decreasing grid congestion. If CPUC mandated that utilities took those cost-saving measures...
1: https://www.smud.org/Rate-Information/Residential-rates#Pric...
2: https://www.eia.gov/electricity/monthly/epm_table_grapher.ph...
All of their 2024 revenues combined are ~$22B vs PG&E's $24.4B, to cover an area 3x larger with just over half the population and even drier climates. All of those states have lower average rates as well.
PG&E is uniquely expensive for no legitimate reason that I've ever been able to discern.
Despite approving the cost increases, state regulators are now complaining that PG&E is spending too much on wildfire mitigation. For example, they're telling PG&E to shift from burying transmission lines to using covered conduction (i.e. plastic shielding around overhead transmission lines). But PG&E is pushing back because they're on the hook for the wildfire civil claims and argue the less costly mitigations are too risky.
[1] See https://www.reddit.com/r/bayarea/comments/196kjtu/pge_rates_...
The ratio of revenue to area served here is radically different though and the other states are significantly better. We can make a prediction to double check this that people in those states pay lower rates on average, which is also true.
If you want to go and add up the customers directly, PG&E serves 5.5M. The others serve around 8.3M people collectively from some quick searches. I don't have info on actual service area, nor do I really want to spend months writing an industry report on it.
Can you math this out somewhat? I certainly can see some grid cost reductions from batteries, but we still need a pretty extensive grid to support baseline load and maintenance of rural lines. How would shaving the load peak from 100% over baseline down to a lower number help?
Given that we are nearing the normal lifespan of much of our rural electric infrastructure that was installed in the mid-20th century, it's not surprising that we have a lot of spend to do. Private utilities love to defer maintenance, especially when it takes 80 years to notice.
We need systematic changes to fundamentally lower costs to more reasonable rates, like what other smaller municipal utilities deliver in California, which are 1/3-1/2 the cost.
The problem is not profit, but how profit is established. PG&E takes a fixed rate of profit of the total cost, so they are incentivized to make everything as expensive as possible. This is in contrast to most market based systems, where a new competitor with lower costs gets to directly take the lowered cost as profit. We instead use regulatory boards, Public Utility Commissions, to determine which investments utilities can make and what prices they can charge customers. This is highly regulated, but the outcomes have been terrible. Even Arizona, whose equivalent of the PUC has been disastrously corrupt, or places like Ohio, which has sent state legislators to prison for their corruption on utility matters, have far lower rates than we do in California.
We have bad regulation in California. That's the fundamental problem. Gavin Newsom, and all the governors who came before, have failed us on our electrical grid. That said, clearly high electricity prices are not a huge problem for our economy, and the high cost of living from high housing costs is clearly a driver of expense for everything a utility does, but we fundamentally have not had the right controls on the grid to keep costs reasonable. We have not set up a system where PG&E profits from delivering lowered costs. Our regulation prevents us from achieving what Marx calls the "falling rate of profit" as we would usually see with a market. Something must change, but simply eliminating PG&E profits won't do it, it's not enough.
Naw. Let's blame the tax payers for existing instead.
But if a lot of homes burn down and the insurance companies and/or homeowners have more political power than the electric utility, the liability gets shifted there by the politics. And then your electric bill is going to suck in order to pay for the people who built their homes in an inadvisable place.
They're made possible by that. The stacking of fuel, on it's own, does not magically create fire.
> The source of the fire is not particularly relevant
Of course it is. We're talking about liability and costs. It's extremely relevant.
> caused tomorrow by a lightning strike.
Then no one should live in California at all. Lightning can strike anywhere. Yet we have a precise map of where all our infrastructure is. Just because one category of risk is difficult to manage does it give you a free pass to ignore others that are easier.
> homeowners have more political power than the electric utility
Do you honestly expect this wouldn't be the _norm_? Why shouldn't it be? You really want to live in a state where a utility has more political power than you? And supposing they did, are you suggesting that would be better than the current outcome?
> who built their homes in an inadvisable place.
Take a look at the map of the lightning fires from 2020. Show me which people were in an "inadvisable place." We're talking about millions of people here representing billions of dollars of economic activity.
Do we want to measure risk realistically? Or are you just enjoying some bizarre modern schadenfreude of watching someone's life burn to the ground because you don't like the plot of land they were on? What about those who inherited that land and home?
It's a weird form of inhumanity that exists here.
The fire triangle is fuel, oxygen and heat. Oxygen is in the air at all times. When the fuel is on the ground, the only thing remaining is heat, and there are both artificial and natural sources of heat. Which means there is going to be a fire whether there is an artificial source or not.
> Of course it is. We're talking about liability and costs. It's extremely relevant.
We're talking about snookering the electric ratepayer for the cost of inevitable fires by pretending that removing one source of heat could have prevented the fire.
There is a plausible case that having more frequent fires is less damaging because it prevents fuel from accumulating. The more fuel is allowed to accumulate the bigger and faster spreading the next fire is when it happens, and the more difficult it is for firefighters to prevent it from spreading into populated areas.
> Then no one should live in California at all.
There aren't that many fires in modern urban areas because the urban areas aren't full of dead vegetation.
The people who choose to live in fire-prone woods are making a different choice.
> Do you honestly expect this wouldn't be the _norm_?
The issue is that decisions should be made using reason rather than political machinations. Because it isn't actually the power utility paying for this, it's the rate payers. When it should be the people buying houses in a tinder box.
> We're talking about millions of people here representing billions of dollars of economic activity.
Which seems like a dumb thing to put in places that are inevitably going to be incinerated?
> Do we want to measure risk realistically?
The way you do this is by putting the cost of the fires on the insurance companies rather than the utility companies, and in turn the insurance premiums of the people who live there rather than the utility bills of the people who live somewhere else.
> What about those who inherited that land and home?
You're not required to use something dangerous just because you got it from your parents.
Anyone know if this American Battery Factory company is going to deliver?[1] They have the same street address as Lion Energy, which seems to be an importer of battery packs and inverters. Street View shows a small startup space.
Back in 2022, they announced they would have a new factory on line in two years. Three years later, no factory.
[1] https://americanbatteryfactory.com/
[2] https://www.energy-storage.news/us-gigafactory-startup-abf-c...
ONE said yesterday (15 May) it was launching US-manufactured 314Ah lithium iron phosphate (LFP) cells, an ‘Aries Grid Module’, and a battery management system (BMS), all designed for the battery energy storage system (BESS) market.
"ONE Launches U.S. Manufactured Grid Products: LFP Cells, Modules and Battery Management Systems"
https://one.ai/one-launches-u-s-manufactured-grid-products-l...
In October 2023, the first LFP cells rolled off ONE’s 10 MWh customer validation line at ONE Circle in Van Buren Township, Michigan. In April of 2023, we started producing Aries LFP modules at Piston Automotive, also in Michigan.
How does pricing compare to BYD and CATL?
https://www.catl.com/en/news/6401.html
https://electrek.co/2025/04/21/catl-unveils-ev-battery-charg...
https://www.ess-news.com/2024/11/28/new-sodium-ion-developme...
https://about.bnef.com/blog/china-already-makes-as-many-batt...
https://www.iea.org/commentaries/the-battery-industry-has-en...
https://www.energy-storage.news/global-bess-deployments-soar...
https://rhomotion.com/news/global-bess-deployments-surpass-e...
There’s a startup doing this at substations. They can network these batteries and then use the utilities’ extra wire capacity to redistribute energy throughout the grid.
The other flipping points are when these outcompete the all-in cost of making a new gas peaker plant and then the cost of bothering to turn existing plants on.
I imagine it is pretty hard to get a BYD Blade to ignite, for example: https://en.wikipedia.org/wiki/BYD_Blade_battery#Safety
Panasonic does make Lithium-ion cells in the Gigafactory, but only ones with Nickel chemistry. Tesla does not make its own cells, but they've collaborated closely with Panasonic to do things like create a new cell size (2170).
> However, in the nearly four years since the 4680 battery was unveiled in 2020 and began mass production at the end of 2023, companies like CATL and BYD have reduced battery costs to RMB 0.4/Wh. Even if Tesla meets its cost reduction target by the end of this year, according to multiple engineers and industry insiders, the cost of 4680 batteries may still range between RMB 0.8-1/Wh, which is twice that of CATL and BYD batteries. Moreover, the safety, cycle life, and charging speed of this battery are weaker than mainstream batteries.
https://m.energytrend.com/news/20240628-47693.html
Sounds like intense competition!
The future of EV transport is either ultra cheap sodium ion /lfp or ultra dense sulfur /solid state.
Tesla's entire battery manufacturing/packaging advantage lead is gone and is probably a legacy disadvantage, or will be soon.
If 200 wh/kg is reached by sodium ion, that is a 300ish mile car with no cobalt, nickel, or lithium that should be fundamentally cheaper than an ICE. It also should enable a dirt cheap 200ish city car or a cheap 40-60 mile Phev.
Even if the CEO didn't destroy the brand with Nazi salutes, Teslas days as a high margin car maker were over. The stock price is unhinged from reality in an unprecedented manner.
https://www.eia.gov/todayinenergy/detail.php?id=64586
Pretty much all new grid assets are solar, batteries, and wind, with a bit of natural gas. And that natural gas will likely be a stranded capital asset that won't be able to compete on price within a decade.
So either it’s going to get released, flared off, or something useful will get done with it even if it goes to $0.
Solar, wind, and storage are a major disruption of our energy technology. They do not follow the same cost curves, and fuel-based generation is already a very mature technology. We are either at early ages or teenager years for solar and storage, we don't know where they will end up when mature, but it's going to be so much cheaper than it is now.
Fans of nuclear claim that sceptics are either radical leftists who want to reduce energy use, or anti-environmentalists don't care about emissions. But I see the pragmatic, diversified way of drastically cutting emissions being renewables + storage + gas turbines.
You end up paying a significant fraction of the cost of having the generating plants producing power 100% of the time, but only get power 0.1% of the time.
The main advantage of not running them all the time is that then you're not emitting CO2, but nuclear plants have that advantage even when you do run them all the time.
If solar blasts through the day you are unprofitable and have to deal with extra excess power.
Maintaining gas power plants is something that can be shared by the grid and is 100% cheaper than building new nuclear plants.
And, of course, the main benefit is at night, because solar is cheap but solar + storage is significantly more expensive, so you get to generate all night -- and get the higher rates from generating at night -- without emitting CO2.
With batteries there is no "too much solar", only too few batteries because they compliment each other so good and batteries are now at a price where adding it to solar is a no brainer economically. Building nuclear now would take 10+ years and then we proabably don't need it anymore. Why take the risk if the new state of the art works?
Suppose you have 1000 MW (constant) of nuclear and 1000 MW (daytime average) of solar. Therefore on the average day you're getting 2 GW total. The daytime price on that day is $0.04/kWh, which is just enough to make solar viable. If every day is like this, solar is doing fine.
But then there's a day when it's extra sunny. Solar is generating not 1000 MW but 1800 MW. Is that good for solar's profitability? No, it's bad, because that means there is oversupply and the price per kWh is zero. Nobody is making any money that day. Solar generated 1800 MW for 12 hours and got zero return. Solar's average is now down to $0.014/kWh. That's below sustainability. Oops. Nuclear also got zero return that day, but only generated at 1000 MW, so its average wasn't negatively affected by as much.
Then, another day, it's extra cloudy. Solar only generates at 300 MW. It's a supply emergency and the wholesale price per kWh rises to $0.28/kWh. Finally everyone is given an opportunity to bring up their average. So solar generates 300 MW for 12 hours and nuclear generates 1000 MW for the same 12 hours and they each get $0.28/kWh. At this point solar's average is back up to $0.04/kWh, which is its breakeven. Meanwhile the nuclear plant's average -- during only the daytime hours -- is $0.1067/kWh.
Then you have the nighttime hours. To play here solar needs storage. Storage is something like $0.14-$0.50/kWh by itself. If you charge it with solar, you're up to $0.18+/kWh. But that's on average again. On the day it was extra sunny, the batteries were already completely full, so that night the price didn't stay at zero and the nuclear plant made some money. On the day it was extra cloudy, the batteries got low, and then the nighttime price wasn't just $0.18/kWh, it was much higher.
Then, once in a while, it's cloudy for a whole week. The batteries aren't just low but completely drained, even before sunset. Solar + batteries can't address this case at all because an entire week's worth of battery storage is prohibitively expensive for something that only happens once a year or so. The nighttime price that week -- because of the volatility created by solar -- goes through the roof. Nuclear plants gets all of that money while the solar plants get none of it, because they're the only available source of electricity.
The economics aren't the same as before because now the prices fluctuate all over the place. But that only means that a generation source that supplies power all the time can make up for the times when rates are low because there is oversupply during the times when the rates are much higher because there is undersupply. Whereas the power source causing the supply fluctuations can't, because its ability to supply power inversely correlates with the price.
LFP at the cell level is below $100/kWh, 5000 cycles means $0.02/kWh out of the cell (maximum since after 5000 cycles battery is still at 80% capacity so the real price is even lower).
Current LFP cell price look more like $50/kWh these days and still going down...
Also about near $0 or below $0 prices, they exist only because we don't currently signal those prices to consumers. Anyone with electric car (parked 95% of the time) or batteries at home or business would charge them at $0.01-0.05/kWh no question asked and price would never go to zero or negative.
For whatever reason that turn of phrase seems very amateur/lazy coming from the Economist.
I was going to say, just plain grammatically incorrect.
At first I though this had to be a truncation for the purpose of the HN subject line, but no, it's the actual title of the article.
Could this be a difference between English and American?
Or
it’s purposeful (“think different”) to get attention,
Or
It’s a shout out to a common slang where past participles (gotten) get used in place of simple past tense (“I seen this before” which should be “I saw this before”) but here is the other swap, the simple past "got" used where the past participle "gotten" belongs.
If we actually stuck to a perfect defined grammer, language would never evolve
The interesting thing you may or may not know is that this use of a past participle for a simple past actually has become normalized, in the languages change sense, in Russian, for one example. In English, it's usually less educated or second language acquisition speakers who make that substitution.
English itself has been shaped by speakers of various languages in its entire history, and native dialectics do this kind of thing all the time too
Different dialects do things differently.
And I made friends with one fellow tending the store there, and I would overhear him answering the store's phone: "Thank you for calling Radio Shack! You have questions; we have answers!"
And I would be mildly amused that he steadfastly held to the rules of grammar in verbal discourse, but I was also a bit disappointed; a loyal Radio Shack employee would lean into the dissonance and take one for the team.
I myself would gladly say the line, with a big grin on my face every time. I would, however, welcome my telephone persona being replaced by an A.I.
Plus that would mean hinting at credit to the bad mars man, and no journalist wants to risk that!
Batteries are a cost-saving grid asset. Journalists are under-reporting this fact, not over-reporting.
It becomes even better if you add vertical integration optimization - i.e. your own solar farm in addition to your own battery farm.
So lucky for him they ignored him and continued.
[2] https://www.bizjournals.com/portland/news/2025/05/28/wilsoln...
Much as a like the idea of niche and diversified battery technologies, it seems like there isn't enough motivation to move too far away from Lithium-based solutions (no pun intended).
The cheapest US made ones are $120/kWh.
The yield and the lack of automation is the holdup.
Source: recent article on Works In Progress.
Current FIR/SIR cost seems to linger around $0.2 NZD / MWh. No idea how do calculate payback on this.
Huh? You just need more and discharge individual ones slower.
What a bizarre claim
https://www.gridstatus.io/live/caiso
At its peak today (May 29), solar was 75% of CA's power generation. And at the peak yesterday (7 PM, May 28), batteries provided 25%.
Seems like solar often produces more than 100% of CA's demand during the daytime and is curtailed. Maybe to charge batteries?
Specifically burying the lines so they survive forest fires.
They're doing well globally, and solar is generally ramping up quickly everywhere but headlines are more often about hitting 100% renewables for an hour or for a day, not over a year.
Which would be home solar and storage
Most things in US are super costly because of monopolies, regulatory capture and perverse incentives: https://en.wikipedia.org/wiki/Perverse_incentive
So on a nice sunny day that isn't too hot there is a lot of solar power that physically cannot be used and so has to be curtailed. In peak summer when ACs are blasting you'll see less curtailment, and in the future as they keep building out battery storage you'll probably see less curtailment in general.
Doesn't this only take a few minutes for a natural gas plant?
Once through peakers can ramp faster, but are less efficient (they’re essentially jet engines bolted to the ground), and more expensive than battery storage.
https://www.eia.gov/todayinenergy/detail.php?id=45956
https://www.lazard.com/media/xemfey0k/lazards-lcoeplus-june-...
That doesn't have to be natural gas, batteries and hydro and even other curtailed solar plants can fill this role if there are enough of them, but we're not there yet.
Maybe not as easy as metals or glass, but can be recycled nonetheless
toomuchtodo•18h ago
Californian batteries set new output record - https://news.ycombinator.com/item?id=44119878 - May 2025