What is a battery energy storage system?

A Battery Energy Storage System (BESS) secures electrical energy from renewable and non-renewable sources and collects and saves it in rechargeable batteries for use at a later date. When energy is needed, it is released from the BESS to power demand to lessen any disparity between energy demand and energy generation.

How much does energy storage cost?

Thermal energy storage and compressed air storage, for example, had an average capital expenditure, or capex, of $232 per kilowatt-hour and $293/kWh, respectively (Figure 1). For comparison, lithium-ion systems had an average capex of $304/kWh for four-hour duration systems in 2023, so generally shorter-term storage.

Will long-duration energy storage out-compete lithium-ion batteries?

New York/San Francisco, May 30, 2024 – Long-duration energy storage, or LDES, is rapidly garnering interest worldwide as the day it will out-compete lithium-ion batteries in some markets approaches and as decarbonization plans become more ambitious.

Will LDEs costs fall as fast as lithium-ion batteries?

Still, LDES costs are unlikely to fall as fast as those of lithium-ion batteries this decade, as lithium-ion batteries are extensively used in both the transport and power sectors, and this demand will drive down the cost of the technology. Figure 1: Fully installed energy storage system average capex and ranges by technology, 2018-2024*

Can LDEs outcompete lithium-ion batteries in China?

Despite China’s lower costs, LDES technologies there may struggle to compete with lithium-ion batteries produced in the country, which are the cheapest in the world. Only a few LDES technologies, like natural cavern-based compressed air storage, can outcompete lithium-ion batteries in terms of per-unit capital costs today.

What is long-duration energy storage (LDEs)?

BNEF’s Long-Duration Energy Storage Cost Survey defines long-duration energy storage (LDES) as one that can offer duration of at least six hours. Average capital expenditure (capex) was derived from 278 data points provided by 95 participants, aggregated for durations between one and 20 hours, and technology delivery years from 2018 to 2024.