The main factors driving the cost differences between thermal energy storage systems in China and other countries include:
- Government Policies and Subsidies:
- China has implemented favorable policies that support the development of long-duration energy storage (LDES) technologies, including thermal energy storage. These policies help reduce costs through large-scale project development and domestic subsidies.
- Economies of Scale:
- China has already achieved economies of scale by developing gigawatt-hour scale projects, which contribute to lower costs compared to smaller-scale projects in other countries.
- Labor Costs:
- Lower labor costs in China compared to other countries also contribute to reduced overall costs for energy storage projects.
- Market Maturity and Industry Size:
- The maturity and larger size of China’s energy storage industry lead to lower operating and maintenance costs compared to systems elsewhere.
- Raw Material Costs:
- The cost of raw materials can influence energy storage technologies. China might have advantages in sourcing materials at competitive prices, contributing to lower costs.
- Project and Land Management Costs:
- Although China has lower labor and material costs, it sometimes experiences higher project and land management costs, which can balance out some of the savings. However, this does not seem to offset the overall lower costs for thermal energy storage systems in China compared to other countries.
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