Overview of Thermal Energy Storage Costs
- Molten Salt Systems: These are a common form of TES used in concentrated solar power plants. The cost can range around $350/kWh for a 10 MW-scale system with a 10% internal rate of return (IRR), requiring about 13.5 c/kWh-th to operate effectively.
- Particle Thermal Energy Storage (TES): This is a newer technology being explored for grid-scale applications. It can offer lower costs, potentially around $2/kWh-th, due to the use of low-cost silica sand and efficient containment methods.
- Global Average Costs for TES Systems: According to BloombergNEF, thermal energy storage can have an installed cost as low as $232/kWh globally, making it one of the most affordable long-duration energy storage technologies available today, especially for durations exceeding eight hours.
Factors Influencing Costs
- Scale: Larger systems tend to have lower costs per kWh due to economies of scale.
- Location: Costs can vary significantly based on geographical location, with countries like China offering favorable policies leading to lower costs.
- Technology Sophistication: Advanced technologies like high-efficiency power cycles can reduce costs and improve efficiency.
- Storage Media: The type and cost of the storage medium, such as molten salt or particulate matter, affect overall system cost.
Comparison with Other Storage Technologies
| Technology | Cost Range | Notes |
|---|---|---|
| Thermal Energy Storage | $232/kWh (global avg), $350/kWh (specific projects) | Molten salt and particle systems are prominent. |
| Compressed Air Storage | $293/kWh (global avg) | Costs are higher outside China due to lower adoption rates. |
| Lithium-Ion Batteries | $304/kWh (for 4-hour discharge) | Costs are falling due to economies of scale and improved technology. |
| Flow Batteries | Higher than thermal and compressed air | Still developing, especially in China. |
| Pumped Hydro Storage | Higher than CAES at long durations | Limited by geography but remains competitive at long durations. |
In summary, while thermal energy storage is cost-effective, its costs vary based on the specific technology used and scale of implementation. Particle TES systems show promisingly low costs, while molten salt systems are more established.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-does-the-cost-of-thermal-energy-storage-systems-vary-between-different-types/
