According to an industry survey by Bloomberg New Energy Finance, the system-wide cost of grid-level energy storage projects in 2017 ranged from US$400 to US$1,400/kWh. The huge cost difference shows that the design and installation of these systems are very complex and the specific circumstances vary. This report focuses on the most critical cost driving factors for lithium battery, including power conversion rate and software control.
The continuous decline in the cost of the whole system is caused by a series of reasons, the most important of which are technological progress, manufacturing scale, competition between lithium battery and PCS manufacturers, productization of turnkey solutions, and the improvement of overall industry technology .
The average survey results of energy storage systems are much higher than the prices widely quoted in the media. According to the data provided by various surveys, the average cost of a power transfer energy storage system is US$454/kWh, and the average cost of an energy storage transfer power system is US$921/kWh. Regardless of the solution, the lithium battery pack is the most expensive component.
According to our survey in the first half of 2017, due to differences in company, system comprehensiveness and cost, the operating time of the whole system with warranty ranges from 5 to 10 years.
We have updated the baseline cost forecast for the 1MW/1MWh project to reflect the new findings in the latest research. The benchmark cost in 2017 is currently US$631/kWh and will be reduced to US$495/kWh in 2020. This is not to say that the current project cost is lower than the previously announced cost level, but the purpose of the modification is to better provide a price reference for typical lithium battery projects worldwide.