Comparing the costs of Compressed Air Energy Storage (CAES) and Lithium-Ion Batteries for long-duration applications involves several factors, including efficiency, capital cost, and scalability.
Compressed Air Energy Storage (CAES)
- Cost and Efficiency: CAES can offer costs as low as 30-40c/kWh for long-duration storage, with a round-trip efficiency of about 60-65%. The capital cost for CAES is around $1,350/kW, with potential for lower costs per kWh as the capacity increases due to the ability to scale storage caverns cheaply.
- Scalability: CAES is highly scalable, making it suitable for long-duration applications, especially when large underground reservoirs are available.
- Maintenance Costs: Higher maintenance costs due to moving parts can be a disadvantage compared to lithium-ion batteries.
Lithium-Ion Batteries
- Cost and Efficiency: Lithium-ion batteries have higher efficiency but are generally more expensive for long-duration applications. The average installed cost for lithium-ion batteries is around $300-$350/kWh, with costs reducing over time.
- Scalability: Lithium-ion batteries are widely used but require additional stacks and power conversion equipment to increase duration, which can be costly.
- Economies of Scale: Lithium-ion batteries benefit from economies of scale due to their use in electric vehicles and other applications, making them harder to beat in cost reductions.
Comparison Summary
| Technology | Capital Cost Range | Efficiency | Scalability | Cost for Long Duration |
|---|---|---|---|---|
| CAES | $116–$140/kWh | 60-65% | Highly Scalable | 30-40c/kWh |
| Lithium-Ion | $267–$561/kWh | Higher | Less Scalable | More expensive than CAES |
In summary, while lithium-ion batteries offer higher efficiency and have been optimized for cost, CAES presents a more cost-effective solution for long-duration storage, particularly due to its scalability and potential for lower cost per kilowatt-hour over time. However, CAES systems face challenges related to efficiency and higher maintenance costs compared to lithium-ion batteries.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-does-the-cost-of-compressed-air-storage-compare-to-lithium-ion-batteries-for-long-duration-applications/
