Several factors contribute to the lower costs of thermal energy storage in China:
- Government Policies and Subsidies: China has implemented favorable policies to support the development of energy storage technologies. These policies encourage the investment in large-scale projects by offering subsidies and tax incentives, which help reduce costs.
- Economies of Scale: China is developing gigawatt-hour scale projects, which are larger than those found in other countries. This scale helps in reducing the unit costs of thermal energy storage systems due to the benefits of mass production and reduced overheads per unit.
- Market Conditions: Factors such as lower domestic labor rates in China also contribute to lower costs. Labor costs can significantly affect the total capital expenditure (capex) of energy storage projects.
- Technological Advancements and Commercialization: China is at the forefront of commercializing new energy storage technologies, including thermal storage. Early adoption and continuous innovation can drive down costs as the technology matures.
- Lower Operating and Maintenance Costs: The maturity of the industry and larger project sizes in China lead to lower operating and maintenance (O&M) costs compared to other markets.
These factors combined make thermal energy storage more economical in China compared to other regions.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-factors-contribute-to-the-lower-costs-of-thermal-energy-storage-in-china/
