The cost of liquid air energy storage (LAES) does vary by location, although some recent modeling suggests a broadly competitive cost range across different regions.
- A detailed study by researchers at MIT and the Norwegian University of Science and Technology modeled LAES costs across 18 US regions and under various decarbonization scenarios. They found the levelized cost of storage (LCOS) for LAES to be about $60 per megawatt-hour (MWh) on average, which is roughly a third of the cost of lithium-ion battery storage and half that of pumped hydropower. This estimate held across a wide range of decarbonization futures and locations, implying relative cost stability across regions.
- However, the same research acknowledges some regional variation in LCOS depending on specific local factors, such as energy prices and renewable generation profiles, which affect the economics of operating LAES systems. Thus, a single LCOS figure may not fully capture location-specific costs.
- Other sources highlight that larger systems tend to have lower costs, with a 50 MW LAES system costing around $140/MWh while a 100 MW system might be closer to $100/MWh. This suggests economies of scale could influence cost differences regionally depending on project size and grid needs.
- Capital expenditures for LAES projects also vary, with recent estimates putting specific capital costs between $882/kW and $1,177/kW, which would translate differently depending on local financing, labor, and construction costs.
In summary, while LAES is expected to have a roughly consistent LCOS of about $60/MWh in many US locations, specific costs can vary based on system scale, local energy market conditions, and capital expenses, making location a factor but not a dominant one in cost variation.
Summary table
| Factor | Impact on LAES Cost |
|---|---|
| Location (energy prices, renewables) | Modest variation in LCOS across regions |
| System size | Larger plants lower LCOS (50MW ~$140/MWh; 100MW ~$100/MWh) |
| Capital expenditure | Varies from $882/kW to $1,177/kW depending on investment timing |
Thus, location influences LAES cost principally through local energy market dynamics and project scale rather than massive price swings, supporting its role as a competitive and flexible grid storage solution.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-does-the-cost-of-liquid-air-energy-storage-vary-by-location/
