Liquid air energy storage (LAES) costs exhibit regional variations influenced by factors such as system scale, energy market dynamics, and integration pathways, though direct regional comparisons in available studies are limited. Here’s a synthesis of findings:
Key Cost Drivers
- Scale: Larger systems (e.g., 100 MW) achieve lower levelized costs of storage (LCOS), dropping to ~$100/MWh compared to $140/MWh for smaller 50 MW systems.
- Capital Costs: Estimated between €300–€600/kWh (~$330–$660/kWh) for construction, varying with component choices and thermal integration.
- Efficiency: New standalone designs improve round-trip efficiency and reduce CO2 emissions, enhancing economic viability (e.g., $832M system cost with $1.7B projected revenue).
Regional Considerations
While the MIT study notes LAES LCOS “varies depending on where it’s being used”, specific regional data is not detailed. However, regional factors likely include:
- Energy Prices: Markets with higher electricity price volatility may benefit more from LAES arbitrage.
- Grid Infrastructure: Regions lacking pumped hydro or compressed air storage sites may prioritize LAES due to its smaller footprint.
- Policy Incentives: Subsidies for long-duration storage (e.g., U.S. DOE’s $0.05/kWh target) could narrow cost gaps.
Projected Improvements
- Efficiency Gains: Integrated systems repurposing waste heat (e.g., for heating/cooling) improve revenue streams.
- Technology Synergies: Co-location with renewables or industrial facilities may lower costs through shared infrastructure.
In summary, LAES costs are context-dependent, with scale and efficiency being primary determinants, while regional energy policies and grid needs introduce further variability.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-does-the-cost-of-liquid-air-energy-storage-systems-vary-by-region/
