Overview of Cost Reduction Goals
- The U.S. Department of Energy (DOE) aims to reduce the cost of long-duration storage by 90% by 2030 through its Long Duration Storage Shot initiative, targeting a levelized cost of storage (LCOS) of $0.05/kWh or less.
- Achieving this goal will require significant innovation and implementation of cost-saving strategies across various LDES technologies.
Specific Cost Reduction Projections
| Technology | Expected Cost Reduction Range | Potential Post-Innovation Cost |
|---|---|---|
| Flow Batteries | Up to 66% potential reduction | Could achieve LCOS below $0.05/kWh with innovations. |
| Compressed Air Storage | Around 60% reduction possible | Projection includes potential to achieve LCOS under $0.05/kWh with innovations. |
| Pumped Hydro Storage | Up to 85% reduction achievable | Known for significant potential cost savings with efficient innovations. |
| Sodium-Ion Batteries | Approximately $0.31/kWh reduction | Shows substantial potential for cost reduction, though still costly. |
| Lead-Acid Batteries | Around $0.31/kWh reduction | Among those with substantial potential for cost decrease. |
| Thermal Energy Storage (Molten Salt) | Relatively lower reduction potential, about $0.027/kWh | Offers cost-effectiveness for longer durations compared to some other technologies. |
Technologies Currently Challenging Lithium-Ion
Thermal Energy Storage and Compressed Air Storage are already among the least expensive LDES options, with capital expenditures of about $232 and $293 per kWh, respectively, compared to lithium-ion’s $304/kWh for shorter durations.
Implementation and Investment
- Implementation costs for innovations can vary significantly, ranging from $86 million to over $1 billion, with durations spanning 5.5 to 11 years.
- The overall investment needed for widespread deployment by 2040 is estimated between $1.5 trillion and $3 trillion, reflecting the scale and potential impact of LDES technologies.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-are-the-projected-cost-reductions-for-long-duration-energy-storage-technologies/
