The economic benefits of using Liquid Air Energy Storage (LAES) systems stem from several key factors:
Cost Competitiveness and Viability
- LAES has been found potentially to be the lowest-cost option for grid-scale, long-duration energy storage compared to more familiar technologies like pumped hydro and lithium-ion batteries. This is especially relevant for future decarbonized grids dominated by intermittent renewable energy sources such as wind and solar.
- Techno-economic models indicate that under certain future energy scenarios and locations, LAES systems can be economically viable. Capital expense subsidies further improve their viability across many areas.
- Studies of LAES layouts demonstrate favorable economic indicators such as high net present values (NPV) and reasonable payback periods. For example, a 10 MW / 80 MWh LAES system showed a significant positive NPV, indicating strong investment returns.
Operational Cost Savings and System Benefits
- LAES can reduce the economic curtailment of renewable energy generation by over 40%, meaning less wasted clean energy and better utilization of renewable resources.
- By storing excess renewable energy and delivering it when needed, LAES supports higher renewable penetration, reducing reliance on fossil fuel plants. This displaces natural gas generation, which in one study led to a 25% drop in natural gas consumption in Spain under optimistic scenarios.
- Including LAES in power systems can lower operating costs by around 19%, thanks to increased use of cheaper renewable energy and better system flexibility.
Other Advantages Impacting Economic Value
- LAES systems are geographically unconstrained, allowing siting flexibility without the location limitations faced by pumped hydro.
- They provide very large-scale storage (multiple GWh) and are scalable with no size limits, which is economically beneficial for meeting long-duration storage needs that other technologies struggle to address.
- LAES does not suffer from capacity degradation over time as some battery technologies do, helping to maintain economic value and reduce replacement costs.
In summary, LAES offers economic benefits through low cost, operational savings, enhanced renewable integration, geographic flexibility, scalability, and durability. These factors together make LAES a promising energy storage solution for future clean energy grids, especially where long-duration storage is critical.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-are-the-economic-benefits-of-using-liquid-air-energy-storage-systems/
