To compare the capital costs of pumped hydro storage (PHS) with those of lithium-ion batteries, let’s examine the costs per unit of each technology.
Pumped Hydro Storage (PHS) Costs
Pumped hydro storage facilities have varying costs based on their design and location.
- For a 0.5 GW x 12-hour storage facility, the cost is approximately $2250/kW.
- Another example shows costs around $1800/kW for a project with a larger head (2,400 feet).
- Costs per kWh for PHS can be as low as $165/kWh when considering the energy storage spread and efficiency.
Lithium-Ion Battery Costs
Lithium-ion battery costs have been decreasing over the years, but specific numbers can vary significantly based on the type of battery and application.
- In general, lithium-ion battery packs for energy storage applications have recently been reported to be around $200-300/kWh or even lower for some recent projects.
- The cost variation is influenced by factors such as production scale, technology advancements, and economies of scale.
Comparison
Pumped Hydro Storage is generally cost-effective in terms of $ per kWh for stored energy because it can store large quantities of energy over long periods. However, the initial capital cost per kW is higher than lithium-ion batteries when comparing cost per kilowatt of installed capacity. Lithium-ion batteries, with their lower upfront capital costs for small to medium applications, offer greater flexibility and are more suitable for short-duration energy storage needs.
In summary, while PHS is more economical for large-scale, long-duration energy storage, lithium-ion batteries are more versatile and cost-effective for smaller applications or shorter storage durations.
Here is a summary table:
| Technology | Capital Cost | Remarks |
|---|---|---|
| Pumped Hydro Storage (PHS) | $1800-$2250/kW | High capacity, long-duration storage. |
| Lithium-Ion Batteries | $200-300/kWh | Flexible, short to medium-duration storage. |
Note that PHS costs are typically reported in $/kW due to its high power capacity, while lithium-ion battery costs are often in $/kWh, reflecting their energy storage capacity.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-do-the-capital-costs-of-pumped-hydro-storage-compare-to-those-of-lithium-ion-batteries/
