22 August 2024:
The recent report by the U.S. Department of Energy on achieving the promise of low-cost, long-duration energy storage shines a spotlight on the transformative potential of flow battery technology. Flow batteries, particularly redox flow batteries, are highlighted as a key contender in the evolving energy storage landscape, offering unique advantages such as scalability and the ability to decouple energy and power capacity due to their use of liquid electrolytes.
The report projects that, with targeted innovations, the levelised cost of storage (LCOS) for flow batteries could see a dramatic reduction by 2030. Currently, the LCOS for flow batteries is estimated at $0.160/kWh. However, with strategic investment in innovation—such as the development of novel active electrolytes, scalable manufacturing processes, and accelerated material discovery—this could be reduced to as low as $0.052/kWh. This potential 66% reduction in system costs would make flow batteries highly competitive in the energy storage market, particularly for applications requiring long-duration storage.
When compared to other technologies discussed in the report, flow batteries offer distinct advantages and face different challenges. For instance, lithium-ion batteries, currently the dominant technology in the market, have a lower upfront cost and are widely used due to their established supply chains. However, they face issues with long-term scalability, resource availability, and safety concerns, particularly under high temperatures and repeated cycling. The report suggests that while lithium-ion batteries may continue to play a significant role in shorter-duration applications, their costs are not expected to decrease as dramatically as those of flow batteries.
In contrast, mechanical storage technologies, such as pumped hydro storage, are effective for long-duration storage but are limited by geographical and environmental constraints. Flow batteries, with their modular and scalable nature, could be deployed in a wider range of locations and applications, making them a more versatile solution.
In summary, the report positions flow batteries as a promising technology that could play a crucial role in the future of energy storage. With the right advancements, flow batteries could not only compete with but potentially surpass other technologies in terms of cost-effectiveness and scalability, particularly in applications requiring long-duration storage. This would be a significant step forward in the global transition to a sustainable energy future.
Read the whole report here.
