How to calculate energy storage quotation

What factors should you consider when buying an energy storage system?

Another factor to consider is operating and maintenance costs. The cost of an energy storage system is not final when you purchase it—there are also the costs involved in keeping it up and running. These can be high, especially for certain batteries which require frequent maintenance.

How do you calculate battery storage costs?

To convert these normalized low, mid, and high projections into cost values, the normalized values were multiplied by the 4-hour battery storage cost from Feldman et al. (2021) to produce 4-hour battery systems costs.

How do you calculate power and energy?

The breakdown of power and energy is derived from Feldman et al. (2021) as described in the methods section. These components are combined to give a total system cost, where the system cost (in $/kWh) is the power component divided by the duration plus the energy component. Figure 5.

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.

Why do we use units of $/kWh?

We use the units of $/kWh because that is the most common way that battery system costs have been expressed in published material to date. The $/kWh costs we report can be converted to $/kW costs simply by multiplying by the duration (e.g., a $300/kWh, 4-hour battery would have a power capacity cost of $1200/kW).

What determines the LCOE of a storage system?

For storage it is assumed that solely the cumulated stored energy determines the LCOE of the storage system. It turned out that C rate is the most important parameter for the LCOE of storage. In contrast, the efficiency plays a less dominant role as often assumed in current technology discussions.