Cost Comparison Overview
- Thermal Energy Storage (TES): The installed cost of TES systems is estimated to be around $232 per kilowatt-hour (kWh) globally, making it one of the cheapest long-duration energy storage technologies. For some forms of particle thermal storage, costs can be as low as $2 to $4 per kWh of thermal energy, making it even more cost-effective for certain applications.
- Compressed Air Storage (CAS): CAS systems have installed costs averaging around $293 per kWh, which is slightly higher than TES but still competitive for long-duration storage.
- Lithium-Ion Batteries: The global average cost for four-hour lithium-ion battery storage is about $304 per kWh, which becomes less cost-effective for longer discharge durations beyond eight hours.
- Gravity Storage: This technology has the highest costs, with averages around $643 per kWh.
Regional Variations
Costs can vary by region, with China having significantly lower costs due to greater commercialization and favorable policies. Outside China, TES costs are about 54% higher, CAS costs are about 68% higher.
Key Advantages of Thermal Energy Storage
- Cost Effectiveness: Especially for particle-based systems using materials like silica sand.
- Scalability: Can be more easily scaled up for long-duration storage.
- Low Environmental Impact: Uses environmentally benign materials like silica sand.
In summary, thermal energy storage offers competitive costs for long-duration energy storage and can be particularly advantageous when using cost-effective materials like silica sand. However, other technologies like lithium-ion batteries remain preferable for shorter discharge durations or applications requiring high energy density.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-does-the-cost-of-thermal-energy-storage-compare-to-other-energy-storage-solutions/
