A New Way to Accurately Measure Energy Storage Costs

 

The new Levelized Cost of Using Storage (LCUS) method combines acquisition costs, operations and maintenance (O&M), expected use, and service life data into a single meaningful metric to compare different energy storage technologies.  

When used properly, LCUS will allow users to make informed decisions when selecting the right energy storage technology for their specific application(s) more simply and effectively than any other method. LCUS is useful in three practical ways:

  1. It compares the cost among different energy storage technology choices — whether they consist of different technologies, formats, designs or manufacturers. 
  2. It compares the costs of different applications of a particular energy storage technology or product.

It helps shed light on how certain operating modes affect the total cost of ownership.

Here's a sample of what you will find in our white paper: 

Comparison among different applications

To show how the impact of applications can have on a single type of energy storage technology, the following graph shows the capacity degradation modeled for three applications: 2 cycles per day, 1 cycle per day and frequency regulation. Frequency regulation exercises the battery the most, but its cycles are small and centered around 50% SOC, so it has less of an impact on the degradation. Peak-shaving cycles the battery once or twice per day, but for modeling purposes, we assume it does at least one and two full cycle(s) per day.