NREL: US utility-scale energy storage costs grew 11-13% in Q1 2022


Energy storage costs in the US grew 13% from Q1 2021 to Q1 2022, said the National Renewable Energy Laboratory (NREL) in a cost benchmarking analysis.

The research laboratory has revealed the results of its ‘U.S. Solar Photovoltaic System and Energy Storage Cost Benchmarks, With Minimum Sustainable Price Analysis: Q1 2022‘ report.

For standalone energy storage, NREL said that the costs benchmark grew 2% year-on-year for residential systems to US$1,503/kWh and 13% for utility-scale to US$446/kWh.

Both figures are modelled market price (MMP) which it uses alongside a new, minimum sustainable price (MSP). MMP is simply the sales price that a developer would charge while MSP is a theoretical construct meant to capture the long-term cost impacts of technological evolution while muting the impact of policy and short-term market fluctuations.

It uses a 5kW/12.5kWh benchmark for residential and a 60MW/240MWh benchmark for utility-scale, clearly modelled along the lines of the California market where four-hour durations have become the norm.

For residential, commercial and utility-scale the MSP is around 10% lower than the MSP. The commercial MMP benchmark in Q1 2022 was US$672/kWh, in between the two other sectors, but a change in methodology between 2021 and 2022 means the years cannot be compared directly, it added.

For solar-plus-storage, the MMP benchmark for residential systems grew 6% year-on-year to US$38,295 while utility-scale costs grew 11% to a benchmark of US$195 million. Commercial was US$1.44 million.

Within solar-plus-storage, the MMP benchmark is 13-15% higher than the MSP for all three segments.

Read Next

February 9, 2023
Proposed changes to rules and regulations will strengthen the Philippines’ position as leading energy storage market in the ASEAN region.
February 8, 2023
The US’ installed base of large-scale battery storage systems is expected to double in megawatt terms during 2023.
February 8, 2023
Hecate Grid, an independent power producer (IPP) developing utility-scale battery storage assets, has raised US$98.9 million through lenders.
February 8, 2023
Portugal-based utility EDP has received clearance to deploy a 1MWh vanadium redox flow battery (VRFB) system as part of a hybrid energy storage project at the site of a retiring gas plant in Asturias, Spain.
February 8, 2023
Slovenia state-owned utility Dravske elektrarne Maribor (DEM) is planning two battery storage units totalling 60MW as well as a pumped hydro energy storage (PHES) plant.

Most Popular

Email Newsletter