It is often difficult to evaluate the benefits, effectiveness and costs of energy storage technologies. These benefits are dependent on how one uses storage and which technology is used for what purpose. The cost of using an energy storage asset also depends on the initial material and installation costs, as well as how well it is maintained during its service life.
These aspects are interconnected and, until now, customers have not been able to easily access this information with a simple test.
The new Levelized Cost of Using Storage (LCUS) method combines acquisition costs, operations and maintenance (O&M), expected use, and service life data into a single meaningful metric to compare different energy storage technologies.
When used properly, LCUS will allow users to make informed decisions when selecting the right energy storage technology for their specific application(s) more simply and effectively than any other method. LCUS is useful in three practical ways:
It compares the cost among different energy storage technology choices — whether they consist of different technologies, formats, designs or manufacturers.
It compares the costs of different applications of a particular energy storage technology or product.
It helps shed light on how certain operating modes affect the total cost of ownership.
True-to-Life Considerations
LCUS calculates the cost of the storage with respect to how much storage is really used, and not the size of the storage asset. It can compare the full cost of using different storage technologies and using the storage in different applications. It can also assess the trade-offs and limitations of different system designs, operating modes, application duties and service regimes.
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