Storage Cost and Performance Characterization Report

1 Energy Storage Technology and Cost Characterization Report July 2019 K Mongird V Fotedar V Viswanathan V Koritarov P Balducci B Hadjerioua J Alam PNNL-28866 Acknowledgments This work was authored by the Pacific Northwest National Laboratory, operated by Battelle for the Department of Energy (DOE), under contract number DE-AC05-76RL01830; Argonne National Laboratory, operated by UChicago Argonne, LLC, under DOE Contract No. DE-AC02-06CH11357; and Oak Ridge National Laboratory, operated by UT-Battelle, LLC, under DOE Contract No. DE-AC05-00OR22725; and supported by the HydroWIRES Initiative of DOE s Water Power Technologies Office (WPTO).

2 We are thankful to Dr. Samuel Bockenhauer, Alejandro Moreno, and Marisol Bonnet of the Department of Energy Office of Energy Efficiency and Renewable Energy WPTO for providing guidance and input on this project. We are also grateful to Dr. Imre Gyuk, who is the Energy Storage Program Manager in the Office of Electricity Delivery and Energy Reliability at the Department of Energy, and Vince Sprenkle of Pacific Northwest National Laboratory, for reviewing this work. Finally, we would like to recognize the efforts of members of Oak Ridge National Laboratory (Patrick O Connor and Boualem Hadjerioua) and Argonne National Laboratory (Vladimir Koritarov) for the literature they provided and their review of draft material.

3 HydroWIRES The electricity system is changing rapidly with the large-scale addition of variable renewables, and the flexible capabilities of hydropower (including pumped Storage hydropower) make it well-positioned to aid in integrating these variable resources while supporting grid reliability and resilience. Recognizing these challenges and opportunities, WPTO has launched a new initiative known as HydroWIRES: Water Innovation for a Resilient Electricity System. HydroWIRES is principally focused on understanding and supporting the changing role of hydropower in the evolving electricity system.

4 Through the HydroWIRES initiative, WPTO seeks to understand and drive utilization of the full potential of hydropower resources to contribute to electricity system reliability and resilience, now and into the future. HydroWIRES is distinguished in its close engagement with the DOE National Laboratories. Five National Laboratories Argonne National Laboratory, Idaho National Laboratory, National Renewable Energy Laboratory, Oak Ridge National Laboratory, and Pacific Northwest National Laboratory work as a team to provide strategic insight and develop connections across the DOE portfolio that add significant value to the HydroWIRES initiative.

5 HydroWIRES operates in conjunction with the Grid Modernization Initiative, which focuses on the development of new architectural concepts, tools, and technologies that measure, analyze, predict, protect, and control the grid of the future, and on enabling the institutional conditions that allow for quicker development and widespread adoption of these tools and technologies. iii Energy Storage Technology and Cost Characterization Report K Mongird1 V Fotedar1 V Viswanathan1 V Koritarov2 P Balducci1 B Hadjerioua3 J Alam1 July 2019 1 Pacific Northwest National Laboratory 2 Argonne National Laboratory 3 Oak Ridge National Laboratory iv Abstract This Report defines and evaluates cost and Performance parameters of six battery energy Storage technologies (BESS)

6 (lithium-ion batteries, lead-acid batteries, redox flow batteries, sodium-sulfur batteries, sodium metal halide batteries, and zinc-hybrid cathode batteries) and four non-BESS Storage technologies (pumped Storage hydropower, flywheels, compressed air energy Storage , and ultracapacitors). Data for combustion turbines are also presented. Cost information was procured for the most recent year for which data were available based on an extensive literature review, conversations with vendors and stakeholders, and summaries of actual costs provided from specific projects at sites across the United States.

7 Detailed cost and Performance estimates were presented for 2018 and projected out to 2025. v Executive Summary This Report was completed as part of the Department of Energy s Water Power Technologies Office-funded project entitled Valuation Guidance and Techno-Economic Studies for Pumped Storage Hydropower. The overarching project is ongoing as of the date this Report was published and being performed by a multi-lab team consisting of staff from five national laboratories: the Argonne National Laboratory, Idaho National Laboratory, National Renewable Energy Laboratory, Oak Ridge National Laboratory, and the Pacific Northwest National Laboratory.

8 The objective of this Report is to compare costs and Performance parameters of different energy Storage technologies. Furthermore, forecasts of cost and Performance parameters across each of these technologies are made. This Report compares the cost and Performance of the following energy Storage technologies: lithium-ion (Li-ion) batteries lead-acid batteries redox flow batteries sodium-sulfur batteries sodium metal halide batteries zinc-hybrid cathode batteries pumped Storage hydropower (PSH) flywheels compressed air energy Storage (CAES) ultracapacitors. Cost and Performance data were obtained from literature, conversations with vendors, and responses from vendors to questionnaires distributed by the research team.

9 Battery operations and maintenance (O&M) costs were obtained from a relatively smaller number of sources and kept constant across all chemistries. For flywheels, ultracapacitors, CAES, and PSH, values were obtained from vendors. Key assumptions used to govern the analysis are as follows: Capital costs for all battery systems are presented for battery capital and management systems (expressed in terms of $/kWh), balance of plant (BOP) ($/kW), power conversion systems (PCS) ($/kW), and construction and commissioning (C&C) ($/kWh). PCS costs are estimated to be the same across all battery technologies except Li-ion.

10 For Li-ion batteries, the cost is assumed to be 90 percent of other technologies due to its higher DC voltage range. A 25 percent decrease in cost over present-day Li-ion PCS costs is assigned to year 2025 due to the benefits of standardization and scalability resulting from increased production volumes. It is assumed that by 2025 all other battery technologies will catch up in terms of increasing the DC operating voltage range. Reasoning behind this assumption is based on factors being addressed across the technologies. For example, flow batteries have been efficiently addressing shunt current-related issues to increase DC string voltage.