Energy Storage Technologies and Their Costs
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Lithium-Ion Batteries (LIBs):
- Utility-Scale: The cost for utility-scale lithium-ion battery systems varies by duration, with 4-hour systems typically priced around $304/kWh in 2022. Projections suggest that costs could decrease to between $143/kWh and $248/kWh by 2030.
- Residential Scale: Costs for residential battery systems range from £2,500 to £15,000+ depending on capacity and brand.
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Thermal Energy Storage (TES):
Thermal energy storage systems are often more cost-effective for long-duration applications, with global average capital costs as low as $232/kWh for long-duration energy storage (LDES). -
Compressed Air Energy Storage (CAES):
CAES systems offer competitive pricing for long-duration storage, with costs around $295/kWh for a 4-hour system. For longer durations, CAES can be as low as $122/kWh. -
Pumped Hydro Storage (PHS):
The installed cost of PHS ranges from $1,700 to $5,100/kW, making it more expensive per kilowatt but often cheaper per kilowatt-hour for large-scale, long-duration applications. -
Flow Batteries:
Flow batteries, such as vanadium redox flow, have higher upfront costs compared to lithium-ion but offer longer lifetimes, with installed costs around $385/kWh. -
Gravity Storage:
Gravity-based storage systems have the highest capital costs among long-duration energy storage technologies, averaging $643/kWh globally. -
Pumped Heat Energy Storage (PHES):
While specific costs are less documented, PHES can offer efficient thermal energy management options.
Factors Influencing Cost Variability
- Scale and Location: Larger-scale projects often benefit from economies of scale, reducing costs per unit. Locations with favorable policies, like China, may see lower costs due to rapid adoption and manufacturing efficiencies.
- Duration of Discharge: Costs vary significantly based on how long a system can discharge energy, with longer durations generally favoring non-battery technologies like CAES or PHS.
- Technological Advancements: Rapid innovation in energy storage technologies continues to drive cost reductions, particularly for lithium-ion batteries.
In summary, while lithium-ion batteries are dominant in shorter-duration applications, technologies like CAES and thermal energy storage become more cost-effective for longer durations. Pumped hydro remains among the most cost-effective options for large-scale energy storage over extended periods.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-does-the-cost-of-energy-storage-systems-vary-by-technology-type/
