Capital cost of utility-scale battery storage systems in the New Policies Scenario, 2017-2040 - Chart and data by the International Energy Agency. The Future of European Competitiveness;
The fundamental driver of this change is that renewable energy technologies follow learning curves, which means that with each doubling of the cumulative installed capacity their price declines by the same fraction. It
The 2022 Cost and Performance Assessment includes five additional features comprising of additional technologies & durations, changes to methodology such as battery replacement & inclusion of decommissioning costs, and updating
Annual percentage change in wind energy generation; CO₂ emissions per capita vs. fossil fuel consumption per capita; CO₂ emissions per capita vs. share of electricity generation from renewables; Carbon intensity of electricity
Base year costs for utility-scale battery energy storage systems (BESSs) are based on a bottom-up cost model using the data and methodology for utility-scale BESS in (Ramasamy et al., 2023). The bottom-up BESS model accounts for major components, including the LIB pack, the inverter, and the balance of system (BOS) needed for the installation.
The cost categories used in the report extend across all energy storage technologies to allow ease of data comparison. Direct costs correspond to equipment capital and installation, while indirect costs include EPC fee and project development, which include permitting, preliminary engineering design, and the owner’s engineer and financing costs.
Pacific Northwest National Laboratory’s 2020 Grid Energy Storage Technologies Cost and Performance Assessment provides a range of cost estimates for technologies in 2020 and 2030 as well as a framework to help break down different cost categories of energy storage systems.
As demand for energy storage continues to grow and evolve, it is critical to compare the costs and performance of different energy storage technologies on an equitable basis.
The 2020 Cost and Performance Assessment provided installed costs for six energy storage technologies: lithium-ion (Li-ion) batteries, lead-acid batteries, vanadium redox flow batteries, pumped storage hydro, compressed-air energy storage, and hydrogen energy storage.
Cost metrics are approached from the viewpoint of the final downstream entity in the energy storage project, ultimately representing the final project cost. This framework helps eliminate current inconsistencies associated with specific cost categories (e.g., energy storage racks vs. energy storage modules).
