Cost for batteries

Here is a realistic estimate of the current costs for battery energy storage including capital and operational expenses:

  • Lithium-ion batteries capital cost today ranges from $100/kWh to $300/kWh for grid-scale systems larger than 1MWh.
  • A realistic mid-range capital cost is around $185/kWh.
  • Fixed O&M costs are typically $10-$15/kW-year.
  • Variable O&M costs around 0.5-1 cent/kWh cycled.
  • Annual throughput of 250-500 cycles depending on usage.
  • Battery lifespan is 5-15 years before replacement needed.
  • So for a 10MWh system the costs over 10 years would be:
    • Capital: 10,000 kWh x $185/kWh = $1.85 million
    • Fixed O&M: $12.5/kW-year x 1000 kW = $125,000/year x 10 years = $1.25 million
    • Variable O&M: Avg 400 cycles/year x 10 years x $0.0075/kWh = $300,000
    • Total 10-year cost = $3.4 million
  • Levelized cost around $340/MWh over 10 years for this system.

Actual costs vary widely based on battery chemistry, scale, location, ancillary equipment and project specifics. But this provides a realistic estimate for modeling purposes. Let me know if you need any other details!

Here are some of the lowest cost battery storage technologies for grid-scale electricity:

  • Lithium-ion batteries - $100 - $150 per kWh for utility scale. Costs continue to decrease rapidly.
  • Flow batteries - $120 - $200 per kWh fully installed. Lowest cost is vanadium redox at $150/kWh.
  • Lead acid batteries - Around $100 per kWh. Only viable for shorter duration needs.
  • Compressed air energy storage - $50 - $100 per kWh based on site geology. Requires underground caverns.
  • Pumped hydro storage - $100 - $300 per kWh. Highly site dependent. Cheapest at scale.
  • Hydrogen storage - $150 - $300 per kWh. Requires hydrogen production and fuel cells. Emerging option.

So in summary, lithium-ion batteries offer the lowest cost currently at around $100-$150/kWh at utility scale. Their costs have fallen fast and are expected to continue improving. For long duration storage, pumped hydro and compressed air can be most economical depending on site suitability.