LDES Costs to Fall by 2030 as Technology Improves and Manufacturing Scales Up: Study

A cost benchmarking study on long-duration energy storage (LDES) technologies, conducted by the Electric Power Research Institute (EPRI) in collaboration with the LDES Council, highlights the growing need for reliable, scalable and cost-effective energy storage solutions as electricity systems face rising demand.

The study underlined the role of LDES in supporting grid reliability and decarbonisation, particularly as power demand increases due to expanding data centres, widespread electrification and the rapid growth of artificial intelligence applications.

To assess the economic viability of different LDES technologies, the study analysed key cost data by examining the low and high ranges for total plant cost (TPC), expressed in dollars per kilowatt-hour ($/kWh), across technology groups. Cost ranges are presented for current conditions in 2025 and for projected scenarios in 2030.

TPC To Be Reduced between 2025 and 2030 for compressed gas ESS technologies from 6% to 25%

Based on submitted cost data, projected TPC reductions between 2025 and 2030 for compressed gas energy storage technologies range from 6% to 25%, reflecting expected improvements in technology performance, development and manufacturing scale.

The study comes at a time when electricity grids worldwide are under increasing pressure from rapid renewable energy expansion and rising power demand. According to the report, growing electrification, data centre load and greater exposure to extreme weather events are driving the need for energy resources capable of delivering power and heat reliably over longer periods.

Beyond cost benchmarking, the study is intended to support utilities, system operators, energy modellers and other stakeholders as they plan future power systems with high shares of renewable energy. By presenting cost data on a consistent basis across a wide range of LDES solutions while preserving commercial confidentiality, the analysis offers practical insights for long-term system planning, modelling and policy design.

Mahika Sri Krishna, Senior Manager, Research & Analysis at the LDES Council, added: “With a growing range of long-duration energy storage technologies now available, planners face real choices that shape system cost and reliability. This study provides cost inputs that can be applied across multiple scenarios to assess which LDES solutions best align with specific system needs and cost considerations. Long-duration energy storage will be critical infrastructure for building reliable, low-carbon energy systems, and this study helps remove a major barrier to deploying these technologies at the scale required to meet future energy needs.”