The cost of liquid air energy storage (LAES) compares favorably to other long-duration energy storage solutions, generally offering a lower levelized cost of storage (LCOS).
Cost Comparison Highlights:
- Liquid Air Energy Storage (LAES): Recent studies, including one by MIT and Norwegian University of Science and Technology, find the LCOS of LAES to be about $60 per megawatt-hour (MWh) irrespective of decarbonization scenarios. This figure reflects a competitive cost structure using commercially available components without rare materials.
- Lithium-ion Batteries: Lithium-ion batteries tend to have a significantly higher LCOS for long-duration storage, ranging roughly between $285 and $581 per MWh, which is about 4 to 10 times higher than LAES according to a 2019 comparison.
- Pumped Hydro Storage (PSH): PSH shows an LCOS typically between $152 and $198 per MWh in the cited data, which is roughly two to three times more costly than LAES.
- Other Technologies: Compressed Air Energy Storage (CAES) and gravitational storage show promising cost structures at very large scales and long durations, with CAES reportedly achieving around $0.10 per kWh (~$100 per MWh) in some scenarios, but this is still somewhat higher than the ~$60/MWh figure for LAES.
Key Considerations:
- LAES is particularly attractive for grid-scale, long-duration applications due to its use of ambient air and electricity only, enhanced efficiency potential via waste heat integration, and site flexibility.
- While LAES may not yet be widely economically viable from a pure investment perspective, its relatively low LCOS compared to prevalent technologies like lithium-ion batteries suggests it could play a key role in the future energy storage mix.
- The cost advantage of LAES over lithium-ion and pumped hydro highlights its potential as a cost-effective solution to support 24-hour renewable energy utilization, making intermittent wind and solar power more reliable.
In summary, liquid air energy storage offers one of the lowest costs among long-duration energy storage technologies, with an LCOS around $60/MWh, significantly cheaper than lithium-ion batteries and cheaper than pumped hydro. This cost advantage, combined with its operational flexibility, positions LAES as a compelling option for scalable, long-duration grid energy storage in the pursuit of decarbonized power systems.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-does-the-cost-of-liquid-air-energy-storage-compare-to-other-long-duration-energy-storage-solutions/
