Comparison of Costs for Different Battery Technologies in the Utility-Scale Sector
The cost of battery technologies in the utility-scale sector varies significantly depending on the type of battery and duration of storage. Below is a comparison of the major battery technologies, focusing on their costs and applications.
1. Lithium-Ion Batteries (LIBs)
- Cost: For four-hour duration systems, the global average installed capex cost is approximately $304/kWh. However, this cost can vary by region and specific application.
- Advantages: Widely used due to their high efficiency and rapid deployment capabilities. Costs for battery packs have reached a record low of about $139/kWh, but this does not include the balance of system (BOS) costs.
- Limitations: LIBs become less competitive for longer durations compared to other technologies.
2. Thermal Energy Storage
- Cost: The global average capex cost is $232/kWh, making it one of the cheapest options for long-duration storage.
- Advantages: Low cost, suitable for extended discharge durations beyond 8 hours.
- Limitations: May have lower energy density and efficiency compared to LIBs.
3. Compressed Air Energy Storage (CAES)
- Cost: The global average capex cost is $293/kWh, placing it between LIBs and thermal storage for long-duration applications.
- Advantages: Well-suited for extended discharge durations, with a strong presence in markets like China due to favorable policies.
- Limitations: Geographically dependent on suitable underground caverns.
4. Flow Batteries and Gravity Storage
- Cost: Flow batteries are less expensive than gravity storage. Gravity storage has one of the highest capex costs at $643/kWh.
- Advantages: Flow batteries offer flexible durations and are developing in scale; gravity storage provides long-duration storage with potentially high capacities.
- Limitations: Both are currently more expensive than thermal and CAES for utility-scale applications.
5. Pumped Hydro Storage (PHS)
Although not specifically mentioned in the recent comparisons, PHS remains one of the most cost-effective long-duration storage technologies, but its deployment is limited by geography.
Summary
The choice of battery technology for utility-scale applications depends heavily on the required discharge duration and specific regional costs. While lithium-ion batteries are prevalent for shorter durations, thermal energy storage and CAES are becoming more competitive for longer durations. The cost-effectiveness of these technologies is also influenced by regional policies and geographical constraints.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-do-the-costs-of-different-battery-technologies-compare-within-the-utility-scale-sector/
