Investment & Return
A new StoreAge
Investment cost of Gravity Storage
Gravity Power will be the most economic bulk storage. The huge amount of storage capacity and the high efficiency of 80% will makes it a unrivaled cost wise technology to shape renewables into a 24/7-source of power.
The Levelised Costs of Storage (LCoS) are calculated at only 14,8 $ct/kWh as a study by Imperial College shows, which is lower than any other commercial bulk storage.
Based on a cost estimation, total investment costs (including planning, grid connection, etc.) for a plant of 8 GWh storage capacity (with diameter approximately 250 m) will typically amount to 1,6 bn USD, resulting in 200 USD/kWh per storage capacity. Operational costs will be below 1% per year of capex.
Although, plant construction cost depends primarily on the size of the piston and the geological conditions at the specific location, the investment will give a return for at least 60 years. Return on invest will be 10% and more, based on a calculation with now subsidies.
For more in-depth analysis on the financial model of Gravity Storage, please contact us.