LCOS (Levelized Cost of Storage) is a cost of energy unit discharged from a storage system accounting for all costs incurred throughout storage lifetime. Parameters used in the LCOS computation include capital expenditures, operation and maintenance costs, stored energy cost, as well as discount rate. Its benefit is that it reflects energy cost throughout the lifetime of the storage under the external conditions.
“We found out, that in case of 200MW/800MWh storage system, LWS LCOS is 16% less than Li-ion and 72% less than pumped hydro”, the research says. The benchmark was carried out for systems with 4h discharge duration under conditions of daily charge-discharge and 45 years lifetime. A discount rate of 8 % and 40 €/MWh charge electricity cost was assumed.
The results show that the LCOS for LWS is 119 €/MWh, the LCOS for lithium-ion systems is 142€/MWh, and the LCOS for a pumped hydro storage is 418 €/MWh.
It is worth noting that with an increase of technological maturity, LWS CAPEX will decrease, that will cause an additional LCOS decrease.
Founded in 2009 by Dr. Michael Salomon, Clean Horizon is a consultancy specifically dedicated to energy storage. The company’s activities cover the USA, Canada, the Caribbean and Latin America markets, and among its clients are EDF, Enel, Israel Electric, Bosch. Clean Horizon is currently involved in 200 energy storage projects.
Energozapas is the world’s only developer of Lifted Weight Storage (LWS) technology that can be used for industrial energy storage. LWS operational principle is based on consuming electricity while lifting weights (several hundred meters lifting height) and generating energy when released weights go down due to the gravity force. Design efficiency of an industrial storage is 80%. The technology allows to built industrial scale storages with more than 300MWh energy capacity.