Thermal energy storage (TES) is one of the most cost-effective long-duration energy storage technologies, especially when compared to other technologies like lithium-ion batteries for discharge durations longer than eight hours. Here’s how its costs compare to other common energy storage technologies:
Cost Comparison
- Thermal Energy Storage (TES):
Cost: The global average capital expenditure (capex) cost for TES is approximately $232 per kilowatt-hour (kWh).
Notes: Costs can vary significantly based on location, with China offering lower capex costs due to favorable policies and larger project sizes. - Compressed Air Energy Storage (CAES):
Cost: CAES has a global average capex cost of about $293 per kWh.
Notes: Like TES, CAES costs are higher in non-China markets, typically 68% more. - Lithium-Ion Batteries:
Cost: For four-hour lithium-ion battery storage, the global average capex cost is around $304 per kWh.
Notes: Lithium-ion battery costs are expected to continue falling due to economies of scale from electric vehicle demand. - Flow Batteries:
Cost: Although specific costs are not detailed in recent reports, flow batteries are noted as having higher installed system costs than TES and CAES, particularly outside China. - Gravity Storage:
Cost: Gravity storage, including technologies like pumped hydro, has the highest average global capex cost at $643 per kWh.
Key Takeaways
- Thermal Energy Storage is currently the cheapest long-duration energy storage technology, particularly suitable for integrating renewable energy into grids.
- Compressed Air Storage and Flow Batteries are also viable alternatives, though more expensive than TES.
- Lithium-Ion Batteries remain competitive but are outpriced by TES for longer duration applications.
- Costs vary significantly by region, with China generally offering lower prices due to larger-scale projects and supportive policies.
Overall, TES is a cost-effective solution for long-duration energy storage, offering significant advantages over other technologies for applications requiring extended energy discharge times.
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-technologies/
