With IP54 ruggedness, scalable LFP battery systems, and hybrid inverter capabilities, these all-in-one solutions deliver reliability, sustainability, and cost savings—whether for daily operations,
Although recent research literature proposes a wide range of methods and models for Cost-Benefit Analysis (CBA) of BESS for grid applications, these are to a little extent applied in
In this work we describe the development of cost and performance projections for utility-scale lithium-ion battery systems, with a focus on 4-hour duration systems. The projections are
How much does a lithium-ion battery storage system cost? Recent industry analysis reveals that lithium-ion battery storage systems now average €300-400 per kilowatt-hour installed, with
Because the BESS has a limited lifespan and is the most expensive component in a microgrid, frequent replacement significantly increases a project''s operating costs. This paper proposes a
The suite of publications demonstrates wide variation in projected cost reductions for battery storage over time. Figure ES-1 shows the suite of projected cost reductions (on a normalized
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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.
Battery cost projections for 4-hour lithium-ion systems, with values relative to 2024. The high, mid, and low cost projections developed in this work are shown as bold lines. Published projections are shown as gray lines. Figure values are included in the Appendix.
Figure ES-2 shows the overall capital cost for a 4-hour battery system based on those projections, with storage costs of $147/kWh, $243/kWh, and $339/kWh in 2035 and $108/kWh, $178/kWh, and $307/kWh in 2050 (values in 2024$).
By expressing battery system costs in $/kWh, we are deviating from other power generation technologies such as combustion turbines or solar photovoltaic plants where capital costs are usually expressed as $/kW. 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.
