Energy Storage Technologies and Their Costs
1. Lithium-Ion Batteries
- Cost: In 2022, the cost of four-hour lithium-ion batteries averaged around $482/kWh. By 2030, costs are projected to range between $159/kWh and $403/kWh, depending on the scenario.
- Advantages: Lithium-ion batteries offer high energy density and rapid deployment thanks to economies of scale, supported by widespread use in electric vehicles and electronics.
- Disadvantages: Cost reduction rates may slow compared to historical trends, and their capacity cost remains higher than some alternatives like thermal or compressed air storage for long durations.
2. Thermal Energy Storage
- Cost: Global average capex costs are about $232/kWh. In non-China markets, costs increase by 54%.
- Advantages: Can be cheaper than lithium-ion batteries for certain applications, particularly long-duration energy storage.
- Disadvantages: Limited by technology maturity and adoption levels outside China.
3. Compressed Air Storage
- Cost: Global average is about $293/kWh. Costs rise by 68% outside China.
- Advantages: Offers a cost-effective option for long-duration storage and is gaining commercial scale in countries like China.
- Disadvantages: Relatively high costs in non-China markets and limited geographical suitability.
4. Mechanical Storage (e.g., Pumped Hydro)
- Cost: Between $106/kWh and $200/kWh, depending on the scale and location.
- Advantages: Utilizes existing infrastructure, offers high energy storage efficiency, and can support grid stability.
- Disadvantages: Limited by geography and significant upfront investments.
5. Other Technologies (Flow Batteries, Gravity Storage)
- Flow Batteries: Costs range from $555/kWh to $951/kWh, but are noted for long-duration capabilities.
- Gravity Storage: High upfront costs, with an average global capex of $643/kWh.
Comparison Summary
| Technology | Cost Range | Advantages | Disadvantages |
|---|---|---|---|
| Lithium-Ion | $159/kWh to $403/kWh (2030 projections) | High energy density, economies of scale | Cost reduction may slow |
| Thermal Storage | ~$232/kWh | Cheaper for long-duration storage | Limited adoption outside China |
| Compressed Air | ~$293/kWh | Cost-effective for long-duration, scaling in China | Higher costs in non-China markets |
| Pumped Hydro (Mechanical) | $106/kWh to $200/kWh | High efficiency, grid stability support | Limited by geography, significant upfront investments |
| Flow Batteries | $555/kWh to $951/kWh | Long-duration capabilities | Higher costs |
| Gravity Storage | ~$643/kWh | Novel technology, promising for long-duration | High upfront costs |
The choice of energy storage technology depends on specific needs like duration, geography, and cost constraints. While lithium-ion batteries have widespread adoption, thermal and compressed air storage are becoming more economically viable for long-duration applications, especially in regions with supportive policies.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-does-the-cost-of-energy-storage-compare-to-other-forms-of-energy-storage/
