The cost of Compressed Air Energy Storage (CAES) compared to other energy storage technologies can vary depending on several factors, including location, technology advancements, and usage duration. Here’s a comparison:
CAES vs. Lithium-ion Batteries
- Capital Expenditure (Capex): In recent analyses, CAES systems have an average capex of approximately $293 per kilowatt-hour (kWh), whereas lithium-ion batteries for 4-hour duration have a capex of about $304 per kWh. However, CAES systems generally require more maintenance due to their moving parts, which can increase operational costs.
- Efficiency: CAES systems typically have lower round-trip efficiency (around 60-65%) compared to lithium-ion batteries, which can be around 90% or higher.
CAES vs. Thermal Energy Storage
- Capex: Thermal energy storage is currently the cheapest option for long-duration storage, with a capex of about $232 per kWh. This makes it more cost-effective than CAES for some applications.
- Duration and Scalability: Both CAES and thermal energy storage can offer long-duration storage, but thermal storage can be more efficient in certain configurations.
CAES vs. Flow Batteries
- Capex: Flow batteries are generally more expensive, with an average fully installed cost of $444 per kWh in 2023.
- Duration and Flexibility: Flow batteries offer flexible duration, but their higher cost makes them less competitive for large-scale applications compared to CAES.
Regional Variations
- China: China has lower costs for many energy storage technologies due to favorable policies and economies of scale. This affects the competitiveness of CAES relative to other technologies in different regions.
In summary, while CAES offers competitive capex costs compared to lithium-ion for long-duration applications, its operational costs and efficiency may be drawbacks. CAES is less expensive than flow batteries but more so than thermal energy storage. Costs vary significantly by region, especially in countries with favorable policies like China.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-does-the-cost-of-caes-compare-to-other-energy-storage-technologies/
