Construction Risks of Long-Duration Energy Storage
- Technology Risks:
- Fire Exposure: Lithium-ion batteries, commonly used in LDES, are susceptible to thermal runaway, which can lead to fires releasing toxic chemicals like hydrogen fluoride.
- Novel Technologies: Technologies such as flow batteries, compressed air energy storage (CAES), and gravity energy storage are still evolving and present uncertainty about efficacy, safety, and performance.
- Insurance and Risk Management Challenges:
- Securing Insurance: The innovative nature of these technologies makes it challenging to secure insurance, impacting project bankability.
- Risk Assessment: Construction professionals need to engage specialized risk engineering teams to assess and mitigate risks effectively.
- Market and Financial Risks:
- Lack of Economic Incentives: Current market structures do not adequately incentivize long-duration storage beyond four hours, making it financially challenging to implement LDES.
- High Capital Costs: Technologies like CAES and pumped hydro energy storage face high upfront costs and require specific geographical conditions.
- Logistical and Environmental Challenges:
- Remote Locations: Energy storage systems are often built in remote areas, where logistics, equipment delivery, and internet connectivity can be problematic.
- Environmental Impact: Reservoir creation for pumped hydro and groundwater contamination with CAES can raise environmental concerns.
- Public Perception: Safety incidents can erode public support and lead to future permitting challenges.
- Operational Safety:
- Job Site Safety: Construction sites are becoming more hazardous, and accidents can lead to project delays and increased costs.
- Prioritizing Safety: Ensuring safety standards is crucial to prevent accidents and maintain public confidence in energy storage projects.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-are-the-unique-construction-risks-of-long-duration-energy-storage-systems/
