The Cost of Storage – How to Calculate the Levelized Cost of Stored Energy (LCOE) and Applications to Renewable Energy Generation

This paper provides a new framework for the calculation of levelized cost of stored energy. The framework is based on the relations for photovoltaics amended by new parameters. Main outcomes are the high importance of the C rate and the less dominant role of the roundtrip efficiency. The framework allows for comparisons between different storage technologies. The newly developed framework model is applied to derive the LCOE for a PV and storage combined power plant. The derived model enables quick comparison of combined PV and storage power plants with other forms of energy generation, for example diesel generation. This could prove helpful in the current discussion about diesel substitution in off-grid applications. In general, the combined levelized cost of energy lies between the LCOE of PV and LCOE of storage.