Comparing thermal energy storage and lithium-ion batteries in terms of cost efficiency involves several aspects, including initial investment, operational costs, and efficiency.
Cost Efficiency Comparison
Initial Investment (CAPEX)
- Thermal Energy Storage: Offers lower initial investment costs compared to lithium-ion batteries. The CAPEX for thermal energy storage systems is generally lower because they do not require complex manufacturing processes like those needed for lithium-ion batteries. For long-duration storage, thermal energy storage systems typically have a lower average cost, around $232/kWh globally.
- Lithium-Ion Batteries: Have higher initial investment costs. However, the cost of lithium-ion batteries has been decreasing rapidly due to economies of scale, especially in the electric vehicle sector. For four-hour lithium-ion battery storage, the average cost is about $304/kWh.
Operational Efficiency
- Thermal Energy Storage: Can achieve high round-trip efficiencies, often between 85% and 95%. This is particularly beneficial for long-duration energy storage where thermal systems can store heat for extended periods with minimal loss.
- Lithium-Ion Batteries: Generally have high round-trip efficiencies as well, often exceeding 90% for short-duration storage. However, their efficiency may decrease over time due to degradation.
Cost-Effectiveness Over Time
- Thermal Energy Storage: Especially cost-effective for long-duration storage needs. It can provide lower costs per kWh over longer discharge durations compared to lithium-ion batteries. This makes it suitable for applications requiring sustained energy release over several hours or days.
- Lithium-Ion Batteries: More cost-effective for short-duration storage applications. While they are more expensive for long-duration needs, advances in technology continue to reduce their cost, making them competitive in many markets.
In summary, thermal energy storage is often more cost-efficient for long-duration needs due to its low CAPEX and high efficiency, whereas lithium-ion batteries are better suited for short-duration applications due to their high efficiency and decreasing costs driven by economies of scale. However, the actual cost efficiency can vary based on regional differences in manufacturing and deployment costs.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-does-thermal-energy-storage-compare-to-lithium-ion-batteries-in-terms-of-cost-efficiency/
