Comparing Energy Storage Costs
Comparing the costs of thermal energy storage to lithium-ion batteries involves examining both the capital expenditure (capex) and operational costs. Here’s a breakdown of the key points:
Thermal Energy Storage Costs
- Capex Costs: Thermal energy storage systems have been reported to have lower capex costs compared to lithium-ion batteries for long-duration applications. According to a BloombergNEF report, thermal energy storage had a global average capex of $232/kWh, which is less than the cost for lithium-ion batteries, especially when considering discharge durations beyond eight hours.
- Cost Per kWh: Thermal energy storage costs can be as low as 5-10 cents per kWh-thermal for certain systems with lower capital costs. Particle thermal energy storage, for example, is priced at $2‒$4 per kWh of thermal energy at a 900°C temperature difference.
- Operational Benefits: Thermal energy storage can offer significant savings by leveraging low-cost renewable energy to store heat for later use, reducing peak energy costs.
Lithium-Ion Battery Costs
- Capex Costs: Lithium-ion battery costs for energy storage have been declining rapidly due to economies of scale and technology advancements. However, their capex costs remain higher than thermal storage for long-duration applications, with typical four-hour lithium-ion battery systems costing around $304/kWh.
- Operational Flexibility: Lithium-ion batteries offer high energy density and rapid response times, making them suitable for applications requiring quick power and grid stability services.
Comparison Summary
| Technology | Capex Cost (Approx.) | Operational Benefits |
|---|---|---|
| Thermal Energy Storage | $232/kWh | Offers significant cost savings for long-duration storage and industrial process heating. |
| Lithium-Ion Batteries | $304/kWh (4 hours) | Provides high energy density and fast response times, ideal for grid stability services. |
Overall, thermal energy storage is more cost-effective for long-duration energy storage needs, while lithium-ion batteries are better suited for applications requiring high power density and rapid response.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-do-the-costs-of-thermal-energy-storage-compare-to-lithium-ion-batteries/
