3FOOD

Third Industrial Revolution Consulting Group
TRANSMISSION
SYSTEM
PEAKER
REPLACEMENT
FREQUENCY
REGULATION
DISTRIBUTION
SERVICES
PV INTEGRATION
9
Unsubsidized Levelized Cost of Storage Comparison
Certain “in front of the meter” technology and use case combinations are cost-competitive with their dominant or “base case”
conventional alternatives under some scenarios, even without the benefit of subsidies or additional, non-optimized streams of
revenue; such observation does not take into account potential social or environmental externalities associated with energy
storage (e.g., environmental benefits associated with avoided gas peaker investment, etc.)
Compressed Air
‡
Flow Battery
‡
Lead-Acid
‡
Lithium-Ion
‡
Pumped Hydro
‡
Sodium
‡
Zinc
Flow Battery‡
‡
Lead-Acid
‡
Lithium-Ion
‡ Sodium
Zinc‡
Flywheel
‡
Lithium-Ion
Flow Battery‡
‡
Lead-Acid
‡
Lithium-Ion
‡
Sodium
‡
Zinc
Flow Battery‡
‡
Lead-Acid
‡
Lithium-Ion
‡
Sodium
‡
Zinc
$192
$188
$230
$248
$221
$211
$245
$290
$276
$288
$285
$347
$321
$274
$365
$396
$275
$419
$400
$373
$355
$426
$402
$379
$461
$376
$347
$345
$516
$426
L A Z A R D ' S L E V E L I Z E D C O S T O F S T O R A G E A N A L Y S I S — V E R S I O N 1 . 0
$165 – $218 – Gas Peaker (a)
Levelized Cost ($/MWh)
Source: Lazard estimates.
Note: Here and throughout this presentation, unless otherwise indicated, analysis assumes 20% debt at 8% interest rate and 80% equity at 12% cost for all technologies and use cases. Assumes seven year
MACRS depreciation unless otherwise noted. Analysis does not reflect impact of evolving regulations/rules promulgated pursuant to the EPA’s Clean Power Plan.
‡ Indicates battery technology.
(a) Indicates illustrative conventional alternative to energy storage. Not intended to reflect the sole conventional alternative (or source of value from replacing such alternatives). The lowest cost
Copyright 2015 Lazard. conventional alternative for a particular use case may not be the lowest cost conventional alternative for another use case.
No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior consent of Lazard.
Source: Lazard (2015) Levelized Cost of Storage LCOS), version 1.0.
$658
$686
$739
$789
$0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800
$892
$927
$948
$923
$950
$957
$989
$1,079
$1,068
$1,129
$1,247
$1,429
$1,692
‡
‡ (c)
$3
(b)
(b)
(e)
‡
‡
(h)
(i)
(j)
(k)
(m)
‡
Source: Lazard estimates.
Note: Here and throughout th
Appalachian bit coal, lo
under Section 111(d).
‡ Denotes distributed gen
The Industry Working Group rightly considers that, given the global market, energy storage is
projected to grow to €44 billion by 2020.
End-Use Efficiency-Productivity across Luxembourg Industry
The exergetic efficiency-productivity gains enabling solar, wind and storage to cost-effectively
resource the global energy system are of utmost value and timeliness. Just as immense,
however, are end-use efficiency gains above and beyond the efficiencies stemming from
electrification (displacing thermal combustion). Efficiency throughout the value chain is as
great of value and timeliness as solar and wind power.
A key metric and indicator of efficiency is the ratio of energy required to produce each unit of
GDP (e/GDP). A quarter century of increasingly detailed assessments point to efficiency as the
single largest pool of low-cost, low-risk means of delivering energy services to the point of use.
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