Compressed air storage, particularly in the context of Compressed Air Energy Storage (CAES), involves several factors that contribute to its higher costs compared to other energy storage technologies like lithium-ion batteries:
- Efficiency Losses: CAES systems have lower round-trip efficiency, typically ranging from 60-65%, due to energy losses during compression and decompression. This inefficiency results in a higher cost per unit of stored energy.
- Capital Costs: The capital expenditure (capex) for CAES systems is relatively high, especially when compared to thermal energy storage. According to BloombergNEF, CAES costs around $293/kWh for fully installed systems.
- Operational and Maintenance Expenses: CAES systems have moving parts, which lead to higher maintenance costs compared to static systems like lithium-ion batteries. Maintenance and operation costs are significant over the system’s lifecycle.
- Storage Medium: Depending on the location and type of storage used (e.g., underground caverns), CAES can be geographically limited, leading to additional costs if suitable storage sites are not available.
- System Complexity: The need for complex engineering and infrastructure, including compressors, turbines, and cavern storage facilities, increases both the initial investment and ongoing operational expenses.
- Energy Transformation Costs: During the compression process, heat is generated and lost during storage, requiring additional energy input (e.g., natural gas) to reheat the air before expansion, adding to costs.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-factors-contribute-to-the-higher-costs-of-compressed-air-storage/
