To compare the capital cost of Liquid Air Energy Storage (LAES) with other energy storage technologies, we need to consider the components and pricing structures of each technology. Here’s an overview:
Liquid Air Energy Storage (LAES)
- Capital Cost: The main CAPEX for LAES is the liquefaction plant, which accounts for about 60% of the total cost. LAES systems, while still developing, show promise due to their potential scalability and efficiency, especially in grid-scale applications.
- LCOS (Levelized Cost of Storage): The LCOS for LAES is reported around $60 per megawatt-hour, which is more competitive than some other technologies like lithium-ion batteries and pumped hydro in certain scenarios.
Lithium-Ion Batteries
- Capital Cost: The cost for lithium-ion batteries can vary widely depending on the type and scale. For instance, the installed cost for large-scale lithium-ion systems is around $300 to $600 per kWh.
- LCOS: Generally, the LCOS for lithium-ion batteries is higher than LAES, typically exceeding $180 per megawatt-hour, depending on the application and scale.
Pumped Hydro Storage (PHS)
- Capital Cost: PHS is one of the cheapest options at scale, with costs around $263 per kWh for large installations.
- LCOS: While the LCOS for PHS can be lower than LAES in many cases, PHS is location-dependent and not always feasible.
Compressed Air Energy Storage (CAES)
- Capital Cost: CAES is highly cost-effective, especially at large scales. It is often cited as one of the cheapest energy storage technologies, comparable to or even cheaper than PHS.
- LCOS: Similar to PHS, CAES’s LCOS benefits from low capital costs but requires specific geological formations.
Summary
- LAES vs. Other Technologies: LAES offers a competitive LCOS compared to lithium-ion batteries but is more location-dependent and technology-specific than CAES or PHS.
- Key Factors: The capital cost of LAES is significant due to the high CAPEX of liquefaction plants, but its competitive LCOS makes it promising for certain applications, particularly with subsidies or improved efficiency.
Overall, while LAES has advantages in certain scenarios, especially regarding its LCOS, its capital costs are significant and remain a barrier to widespread adoption compared to more established technologies like PHS and CAES.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-does-the-capital-cost-of-laes-compare-to-other-energy-storage-technologies/
