Lazard is a financial advisory and asset management firm which is mostly involved in the investment banking sector. Its recent study shows some promising economic trends for energy storage.
Promising data for green energy storage
According to Lazard’s study, storage costs are expected to decrease significantly in the next five years. These changes will be driven by increasing use of renewable integration, governmental and regulatory requirements and the need of an aging and changing power grid.
Actually, storage technologies are already competetive in some situations: at the utility scale or as frequency regulation. However, it will still take time for them to become fully competetive for rooftop solar.
The greatest capital cost decline is expected in case of lithium batteries – a spectacular fall of 50% in the next 5 years. Flow batteries will experience 40% and lead batteries – 25% decrease of price. The cost will declined mainly as a result of manufacturing and engineering improvements in batteries rather then in BOS costs. Read the full study.
Also, read how net-metering is competing with storage.
Green energy storage – technology comparison
We already know lithium-ion is the most promising technology, although also has its drawbacks. Let us how a look at comparison of different storage technologies based on Lazard’s study:
low cost, mature technology, well developed design, requires suitable geology, low energy density, exposure to natural gas price
power and energy profile highly and independtly scalable, no degradation in „energy storage capacity”, relatively high balance of system costs,
high power density, scalability and depth of discharge capability, compact design with integrted AC motor, relatively low energy capacity, high heat generation
mature technology with established recycling infrastructure, advanced lead-acid technologies leverage existing technologies, poor ability to operat in a partially charged state, relatively poor depth of discharge and short lifespan
multiple chemistries available, efficiently power and energy density, remains relatively high costs, requires advanced manufacturing capabilities to achieve high performance
mature technology, high power capacity soltuton, relatively low energy density, limited available sites
relatively mature technology, high energy capacity, long duration, inherently higher costs, operates at high temperature resulting in potential flammability issues
quoted as low cost, but currently unproven commercially