Cost Comparison of Thermal Energy Storage and Compressed Air Energy Storage
The costs of thermal energy storage and compressed air energy storage can be compared based on their capital expenditures (capex), operational costs, and efficiency.
Thermal Energy Storage:
- Capex Cost: Thermal energy storage has a lower capex cost, with global averages at about $232/kWh, making it the cheapest option among various long-duration energy storage technologies.
- Cost Per Unit: The cost per unit of energy stored can be around 13.5 cents/kWh-th for a 10% internal rate of return (IRR), assuming a capex of $350/kWh.
- Advantages: Highly scalable, can store heat at very high temperatures, and is particularly effective for industrial processes requiring high temperatures.
Compressed Air Energy Storage:
- Capex Cost: Compressed air energy storage has a higher capex cost, averaging around $293/kWh globally.
- Cost Per Unit: The cost per unit of energy stored for CAES is about 26 cents/kWh to achieve a 10% IRR at a capex of $1,350/kW.
- Advantages: Can provide long-duration storage cheaply if scaled properly and has geographic flexibility as long as suitable underground storage sites exist.
Key Differences:
- Efficiency: CAES typically has a lower round-trip efficiency (around 63%) compared to thermal energy storage, which can maintain higher efficiencies if well-insulated.
- Applications: Thermal energy storage is well-suited for high-temperature applications and grid stability, while CAES is advantageous for long-duration electricity storage.
Overall, thermal energy storage offers lower costs and higher flexibility for industrial applications, while compressed air energy storage provides an advantage in terms of scalability for long-duration electricity storage.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-do-the-costs-of-thermal-energy-storage-compare-to-compressed-air-energy-storage/
