LAZARD'S LEVELIZED COST OF STORAGE ANALYSISVERSION 1.

Capital Cost Comparison

While capital costs of certain energy storage technology and use case combinations are currently high relative to selected conventional
alternatives and, in some cases, more established energy storage technologies (e.g., pumped hydro, compressed air, etc.), capital costs
must be considered along with a number of other factors that impact the levelized cost of energy storage (e.g., energy density, cycling
capability, etc.)
Compressed Air $171

Flow Battery $324 $970

Lead-Acid $553 $1,937
TRANSMISSION
SYSTEM Lithium-Ion $422 $1,075
Pumped Hydro $213 $313

Sodium $449 $1,367
(a)
Zinc $234 $414
Flow Battery $297 $1,182

Lead-Acid $576 $1,960
PEAKER
Lithium-Ion $446 $1,098
REPLACEMENT
Sodium $472 $1,391
(a)
Zinc $258 $437
FREQUENCY Flywheel $1,800 $3,000+
REGULATION
Lithium-Ion $1,200 $1,720
Flow Battery $307 $1,003

Lead-Acid $627 $2,542
DISTRIBUTION
SERVICES Lithium-Ion $492 $1,145

Sodium $483 $1,434
(a)
Zinc $304 $477

Flow Battery $662 $1,387

Lead-Acid $682 $2,072
PV INTEGRATION Lithium-Ion $622 $1,425

Sodium $611 $1,751
(a)
Zinc $359 $532
$0 $500 $1,000 $1,500 $2,000 $2,500 $3,000
Capital Cost ($/kWh)
Source: Lazard estimates.
Note: Capital cost information presented on this page as the sum of AC and DC capital costs per kWh of usable energy. Figures as presented on this page exclude assumed EPC and administrative costs
(assumed to be 15% of AC and DC capital costs).
Indicates battery technology.
(a) Zinc technologies are not currently widely commercially deployed. Capital costs are likely lower than other energy storage technologies due to survey participants willingness to incorporate possible future
15 capital cost decreases into current quotes/estimates.
Copyright 2015 Lazard.
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.
 LAZARD'S LEVELIZED COST OF STORAGE ANALYSISVERSION 1.0

Capital Cost Comparison (contd)

While capital costs of certain energy storage technology and use case combinations are currently high relative to selected conventional
alternatives and, in some cases, more established energy storage technologies (e.g., pumped hydro, compressed air, etc.), capital costs
must be considered along with a number of other factors that impact the levelized cost of energy storage (e.g., energy density, cycling
capability, etc.)

Flow Battery $859 $2,400

Lead-Acid $934 $2,184
MICROGRID Lithium-Ion
$659 $1,312
Sodium $650 $1,601
(a)
Zinc $540 $784
Flow Battery $291 $1,061

Lead-Acid $611 $2,001

ISLAND Lithium-Ion $476 $1,128

Sodium $466 $1,418
(a)
Zinc $288 $461
Flow Battery $311 $1,081

Lead-Acid $631 $2,021
COMMERCIAL
Lithium-Ion $386 $1,149
INDUSTRIAL

Sodium $487 $1,438
(a)
Zinc $309 $481

Flow Battery $649 $1,060

COMMERCIAL Lead-Acid $764 $2,148
APPLIANCE Lithium-Ion

$634 $1,286
(a)
Zinc $482 $625

Flow Battery $500 $1,604

RESIDENTIAL Lead-Acid $1,004 $2,388

Lithium-Ion $946 $1,700

$0 $500 $1,000 $1,500 $2,000 $2,500 $3,000

Capital Cost ($/kWh)
Source: Lazard estimates.
Note: Capital cost information presented on this page as the sum of AC and DC capital costs per kWh of usable energy. Figures as presented on this page exclude assumed EPC and administrative costs
(assumed to be 15% of AC and DC capital costs).
Indicates battery technology.
(a) Zinc technologies are not currently widely commercially deployed. Capital costs are likely lower than other energy storage technologies due to survey participants willingness to incorporate possible
16 future capital cost decreases into current quotes/estimates.
Copyright 2015 Lazard.
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.