Cost of Long-Duration Energy Storage vs. Short-Duration Storage
- Long-Duration Energy Storage Cost Characteristics:
- LDES technologies typically cover storage durations of 10 hours or more.
- The U.S. Department of Energy (DOE) has set a target to reduce the levelized cost of LDES to $0.05 per kWh by 2030. Achieving this will require further technological innovation, as current projections indicate that most long-duration technologies will exceed this target without improvements.
- Examples of some of the least expensive LDES technologies by capital cost include thermal energy storage at approximately $232/kWh and compressed air energy storage around $293/kWh. These costs are lower than lithium-ion batteries designed for 8-hour durations but still involve significant upfront investment.
- Technologies such as pumped hydropower, compressed air storage, and flow batteries show potential to meet DOE targets with innovation.
- Short-Duration Energy Storage Cost Characteristics (e.g., Lithium-ion Batteries):
- Lithium-ion batteries are widely used for short-duration storage (around 4-hour discharge).
- The global average capex for 4-hour lithium-ion battery storage is approximately $304/kWh.
- While lithium-ion batteries have seen rapid cost declines, they remain more expensive per kWh of capacity for longer-duration applications compared to some LDES technologies.
Key Differences and Insights
| Aspect | Long-Duration Energy Storage | Short-Duration Storage (Lithium-ion) |
|---|---|---|
| Typical Duration | 10+ hours | Around 4 hours |
| Capital Cost (Capex) per kWh | Thermal: $232/kWh; Compressed Air: $293/kWh | Lithium-ion (4-hour): $304/kWh |
| Levelized Cost Target by 2030 | DOE target $0.05/kWh, currently higher | Lower LCOS due to maturity and high energy density |
| Maturity | Emerging, requiring innovation to lower costs | Mature, with rapidly declining costs |
| Cost Efficiency for Duration | More cost-effective for long durations | Higher costs and less efficient for long duration |
- LDES technologies currently have higher upfront costs but are more cost-effective than lithium-ion batteries for storage durations beyond about 8 hours.
- Lithium-ion batteries are generally cheaper and more efficient for short-duration applications but become less economical for longer durations due to higher unit costs of stored energy and low energy density relative to long-duration alternatives.
In summary, long-duration energy storage tends to have higher initial capital costs and levelized costs compared to short-duration lithium-ion batteries but can become more cost-effective for applications requiring storage durations exceeding 8 to 10 hours. Continued innovation is expected to reduce LDES costs further, potentially surpassing lithium-ion for longer-duration needs by 2030.
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-short-duration-storage-2/
