The costs of utility-scale battery storage systems vary based on several factors, including the storage duration, which is a critical component in determining both the capital costs and operational efficiency. Here’s how costs typically vary with different storage durations:
Variation in Costs by Storage Duration
- Capital Costs: The installed capital costs for utility-scale battery energy storage systems (BESSs) generally decrease with longer storage durations when measured in terms of $/kWh. However, system costs expressed in $/kW (which reflect power capacity) increase with longer durations.
- Components Affecting Costs:
- Lithium-ion Battery Packs: These are the core cost component and scale directly with energy capacity (kWh).
- Inverters: Their costs scale with power capacity (kW), not energy capacity.
- Balance of System (BOS): Includes additional infrastructure necessary for the installation, which can vary based on system complexity and integration needs.
- Examples and Projections:
- A 4-hour duration system is commonly analyzed, as it provides a balanced perspective on both energy and power needs.
- Longer-duration systems (e.g., 6, 8, 10 hours) are becoming more prevalent, offering better energy storage efficiency but at potentially higher upfront costs per kW.
- Specific Costs:
- Grid-scale lithium-ion batteries often cost around $300/kWh when fully integrated ($1,200/kW), which includes not just the battery cells but also inverters, BOS, and other costs.
- For a typical utility-scale system, costs can vary significantly based on specific configurations and chemistries used.
Key Points for Cost Consideration
- Lithium-ion vs. Other Technologies: Different technologies (e.g., redox flow, lead acid) have different cost dynamics.
- System Complexity: Longer durations may require more complex systems, affecting total costs.
- Economies of Scale: Larger systems can typically achieve better economies of scale.
In summary, while longer-duration utility-scale batteries may offer efficiency advantages, their costs are more nuanced, depending on how they are measured and the specific components included in the system.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-do-the-costs-of-utility-scale-batteries-vary-with-different-storage-durations/
