Different types of energy storage require different levels of investment and setup time before they can be used.
Some technologies, like supercapacitors, zinc batteries, lead-acid batteries, and molten salt systems, can be built and used in less than 10 years. Among these, only molten salt tends to be more expensive to develop. The others are relatively affordable to set up.
Scientists and engineers are also working on new innovations to make energy storage more efficient, reliable, and affordable. When they tested the top 10% of those innovations (the ones that had the biggest positive effect), they found that they could reduce the cost of storing energy by 12% to 85%, depending on the technology.
If those top improvements are used, the new cost of storing electricity could drop to between 2.6 and 25.5 cents per kilowatt-hour—which is a big deal when you’re storing large amounts of energy for the power grid.
However, making these improvements isn’t free or instant. On average, it would take about 5 to 11 years to make them happen, and the cost of doing so could range from $86 million to over $1 billion, depending on the technology.
Study the key terms and data table below to compare different energy storage technologies.
Key Terms
- LCOS (Levelized Cost of Storage): The average cost to store 1 kilowatt-hour (kWh) of electricity.
- % LCOS Change: How much cheaper (or more expensive) the technology becomes after innovation.
- Innovation Portfolio Cost: The cost (in millions of dollars) to develop the improvements.
- Implementation Duration: How many years it takes to put innovation into practice.
Table of Technologies
| Technology | LCOS ($/kWh) after innovation | % LCOS Change from baseline | Innovation Portfolio Cost ($M) | Implementation Duration (Years) |
|---|---|---|---|---|
| Flow Batteries (FBs) | $0.055 | -66% | 325 | 10 |
| Lead-acid Batteries (PbAs) | $0.086 | -77% | 176 | 7 |
| Lithium-ion Batteries (LIBs) | $0.070 | -51% | 1,063 | 10.5 |
| Sodium-Ion Batteries (NaIBs) | $0.255 | -54% | 244 | 11 |
| EDLC Supercapacitors | $0.337 | -24% | 86 | 5.5 |
| Zinc (Zn) Batteries | $0.082 | -45% | 155 | 6 |
| Hydrogen Storage (above ground) | $0.160 | -33% | 491 | 9.5 |
| Hydrogen Storage (below ground) | $0.115 | -12% | 400 | 9.5 |
| Compressed Air Energy Storage | $0.026 | -60% | 745 | 7.5 |
| Pumped Storage Hydropower | $0.022 | -85% | 570 | 8 |
| Molten Salt Thermal Energy Storage | $0.112 | -17% | 759 | 7 |
Source: DOE
Instructions: Read the informational text and study the data table above to answer the computational questions.
Q1. Which two technologies have the lowest LCOS after accounting for innovation impacts?
Q2. What are the two energy storage technologies that have the largest percent reduction in LCOS?
Q3. What are the two energy storage technologies that have the shortest implementation duration?
Q4. Using the LCOS for zinc batteries, calculate the total cost to store 500,000 kWh of electricity. Show your work.
Q5. How many years sooner could zinc batteries be used compared to sodium-ion batteries? Show your work.
Q6. How much more expensive is the innovation cost for Lithium-ion batteries (LIBs) compared to Lead-acid batteries (PbAs)?
Q7. A utility wants to store 1,000,000 kWh using Lead-acid batteries. Using the LCOS for Lead-acid batteries, what is the total cost? Show your work.
Q8. The final LCOS for LIBs is 51% lower than baseline. What was the original LCOS before innovation? Show your work. Hint: Final = Original × (1 – % decrease)
Q9. If EDLCs cost $0.337 after a 24% reduction, what was the original LCOS before innovation?
Q10. Rank these three technologies from lowest to highest LCOS: LIBs, Zinc, and Sodium-ion.