Are battery storage costs based on long-term planning models?

Battery storage costs have evolved rapidly over the past several years, necessitating an update to storage cost projections used in long-term planning models and other activities. This work documents the development of these projections, which are based on recent publications of storage costs.

How much does a 4 hour battery system cost?

Figure ES-2 shows the overall capital cost for a 4-hour battery system based on those projections, with storage costs of $245/kWh, $326/kWh, and $403/kWh in 2030 and $159/kWh, $226/kWh, and $348/kWh in 2050.

What are battery cost projections for 4 hour lithium-ion systems?

Battery cost projections for 4-hour lithium-ion systems, with values normalized relative to 2022. The high, mid, and low cost projections developed in this work are shown as bolded lines. Figure ES-2.

Does battery storage cost reduce over time?

The projections are developed from an analysis of recent publications that include utility-scale storage costs. The suite of publications demonstrates wide variation in projected cost reductions for battery storage over time.

Does volatility of energy prices affect energy storage parameters?

For the analysis of energy storage parameters, a methodology was adopted assuming that the volatility of energy prices in a year in particular years results in slight changes in the optimal parameters of the energy storage.