The cost comparison between long-duration energy storage (LDES) and lithium-ion batteries depends significantly on the duration of discharge and the specific technology used.
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Capital Expenditure (Capex) Comparison:
For shorter durations such as four-hour storage, lithium-ion batteries currently have an average capex of about $304 per kWh as of 2023. In contrast, some LDES technologies like thermal energy storage and compressed air energy storage have lower capex costs for longer durations. Thermal energy storage averages $232/kWh, and compressed air storage about $293/kWh, both cheaper than lithium-ion batteries when considering more than eight hours of discharge. -
Cost Trends and Competitiveness:
Some long-duration technologies are becoming cost-competitive with lithium-ion batteries but are unlikely to match lithium-ion’s rapid cost-reduction trajectory in the near term. The levelized cost of energy for many LDES solutions in 2030 is still projected to exceed the U.S. DOE’s target of $0.05/kWh, although with further innovation, technologies like pumped hydro, compressed air, and flow batteries could meet or come close to this target by 2030. -
Market Maturity and Scale:
While many LDES technologies are still in early deployment stages globally, countries like China are advancing gigawatt-scale LDES projects, particularly in compressed air and flow batteries, driven by favorable policies and resulting in lower capex in those markets.
Summary:
– Lithium-ion batteries cost roughly $304/kWh for short-term (4-hour) storage.
– Thermal and compressed air LDES can cost less per kWh — approximately $232 to $293/kWh — making them more economical for longer-duration storage beyond 8 hours.
– LDES technologies currently face challenges matching lithium-ion’s rapid cost declines but have potential to become more competitive with innovation and scale, especially for long-duration needs.
Hence, for longer durations, certain LDES options are already cheaper than lithium-ion batteries, but lithium-ion remains dominant and often more cost-effective for shorter-duration storage.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-does-the-cost-of-long-duration-energy-storage-compare-to-lithium-ion-batteries/
