This work presents an update of energy storage system costs assessed previously and separately by the U.S. Department of Energy (DOE) Energy Storage Systems Program. The primary objective of the series of studies [1,2,4,5,6] has been to express electricity storage benefits and costs using consistent assumptions, so that helpful benefit/cost comparisons can be made.

The framework for benefits and cost analysis was developed under a number of earlier studies sponsored by the Program, most specifically the study Benefit/Cost Framework for Evaluating Modular Energy Storage by Distributed Utility Associates and Longitude 122 West, Inc. [1], which establishes consistent bases and assumptions used to calculate the costs and benefits of energy storage. The most important factors influencing total lifecycle cost are the capital cost of the equipment, followed by replacement costs (if any), and, finally, the cost of energy for recharging. Replacement costs are affected by expected service life and the life-cycle costs of energy (based on system efficiency).

Benefits, in large part, depend on the functions required by the user and, again, the expected service life of the system....(Read more...)