The cost of thermal energy storage (TES) compares favorably to other energy storage technologies, particularly for long-duration applications:
- According to a BloombergNEF report, fully installed global average capital expenditure (capex) costs are approximately $232 per kWh for thermal energy storage, making it cheaper than lithium-ion batteries, which cost about $304 per kWh for four-hour storage duration, and compressed air storage at $293 per kWh. Gravity storage has even higher costs at $643 per kWh.
- The cost advantage of thermal energy storage is more pronounced for long-duration energy storage (discharge durations longer than eight hours), where TES and compressed air storage are now less expensive than lithium-ion batteries.
- Cost differences vary by region, with China having significantly lower installed costs for TES due to larger-scale deployment and favorable policies. Outside China, TES costs can be roughly 54% higher than the global average, reflecting earlier commercialization stages in other markets.
- The National Renewable Energy Laboratory (NREL) highlights that particle-based TES technologies using inexpensive materials like silica sand can achieve very low energy storage costs of about $2–$4 per kWh of thermal energy stored, which is much cheaper than lithium-ion batteries. However, TES has lower energy density, making it more suitable for large-scale, long-duration stationary storage rather than mobile or space-constrained applications.
- Another estimate puts TES costs at around 13.5 cents per kWh thermal for a project with a 10% internal rate of return, corresponding to roughly $350 per kWh capex, though costs can vary between 5 to 10 cents per kWh in optimistic cases.
In summary, thermal energy storage is among the cheapest long-duration energy storage options on a capital cost basis, significantly undercutting lithium-ion batteries especially for discharge durations beyond eight hours. Its low cost and scalability make TES attractive for grid-scale, long-duration storage, despite lower energy density compared to batteries.
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-forms-of-energy-storage/
