The costs of pumped hydroelectric energy storage systems (pumped storage hydropower, PSH) are generally lower than those of lithium-ion batteries when measured on a cost-per-kilowatt-hour (kWh) basis.
Cost Comparison
- Pumped Hydro Storage Costs:
The capital expenditure (CAPEX) for pumped storage hydropower systems ranges roughly from $1,800 to $5,505 per kilowatt (kW) of capacity, depending on site specifics such as geography and construction variables. When considering cost per unit of energy capacity ($/kWh), pumped hydro projects have been reported in the range of $106 to $200 per kWh. Another older estimate from 2019 suggests about $165/kWh for pumped hydro. - Lithium-Ion Battery Storage Costs:
Lithium-ion battery storage projects typically involve higher capital costs, with total project costs ranging from approximately $393 to $581 per kWh according to World Bank data cited in 2020. This places lithium-ion batteries at roughly two to three times the cost per kWh compared to pumped hydro.
Summary
| Storage Type | Capital Cost per kWh (approx.) | Capital Cost per kW (approx.) |
|---|---|---|
| Pumped Hydroelectric (PSH) | $106 – $200 | $1,800 – $5,505 |
| Lithium-Ion Batteries | $393 – $581 | Not directly provided but typically high |
Pumped hydro is recognized as the cheapest energy storage technology globally on a cost per kWh basis, making it economically favorable for large-scale, long-duration grid energy storage. However, the high upfront costs and suitable site requirements for pumped hydro can pose development challenges. Lithium-ion batteries, while more expensive per kWh, offer greater siting flexibility and faster deployment.
In conclusion, pumped hydroelectric storage systems tend to have significantly lower costs per unit of energy stored compared to lithium-ion batteries, but the choice between them depends on project scale, geography, and intended application on the grid.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-do-the-costs-of-pumped-hydroelectric-energy-storage-systems-compare-to-lithium-ion-batteries/
