Energy Storage Technologies
Appendix 2 presents the methodology for developing quantitative parameters for energy storage technologies, with the objective of ensuring that data can be directly compared across different technologies. The core of the methodology lies in standardizing the collection, processing, and presentation of technical and economic data, thereby supporting system analysis and modeling.
First, the appendix emphasizes data consistency, requiring that all cost data be expressed in constant 2025 prices and exclude taxes such as VAT. This eliminates distortions caused by inflation or differences in tax policies across countries and time periods, ensuring comparability.
The quantitative description includes two main groups: technical/energy data and economic data. The technical group reflects operational characteristics such as capacity, efficiency, storage duration, lifetime, and system response parameters. The economic group focuses on capital costs, operation and maintenance (O&M) costs, and other lifecycle-related costs.
A key aspect of the methodology is linking parameters to the Final Investment Decision (FID). Data for years such as 2025, 2030, 2040, and 2050 represent the state of technology at the time of investment decision, rather than at the time of operation. This improves the accuracy of long-term modeling and technology deployment analysis.
The appendix also addresses the treatment of O&M costs, including both fixed and variable components. Fixed O&M costs may be expressed as a percentage of total investment cost or per unit of installed capacity per year, while variable O&M costs are calculated per unit of energy output. These include labor, maintenance, consumables, and other operational expenses.
In addition, the methodology considers factors such as reinvestment over the lifecycle, discounting of costs over time, and assumptions related to real-world operation. As a result, the quantitative data capture not only initial costs but the full lifecycle economics of each technology.