Investment & Return
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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 9 $ct/kWh for 10 GWh plant and nearly 18 $ct/kWh for a 1 GWh size. In a comparative study by Imperial College is shown, that LCoS if Gravity Storage are lower than any other commercial bulk storage.
Based on a cost estimation, the total investment costs (including planning, etc.) vary from 160 USD/kWh of storage capacity for a 10 GWh size and 380 USD/kWh for a 1 GWh size. 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.