How to calculate the investment rate of return on gravity energy storage

Does gravity energy storage have a return on investment (ROI)?

Return on Investment (ROI) The deployment of gravity energy storage systems will result in annual revenues. To investigate whether the savings received throughout the lifetime of the system will be enough to recover the upfront cost, it is important to determine the return on investment (ROI).

How do you calculate the cost of gravity energy storage?

To calculate the levelized cost of gravity energy storage, the system investment cost is found by adding all relevant construction and equipment costs for the installation of the system. This calculation takes into consideration the time value of money with a discount rate over the system lifetime.

How to calculate financial feasibility of gravity energy storage project?

Life cycle cost analysis To calculate the financial feasibility of gravity energy storage project, an engineering economic analysis, known as life cycle cost analysis (LCCA) is used. It considers all revenues, costs, and savings incurred during the service life of the systems. The LCC indicators include NPV, payback period, and IRR.

Is gravity energy storage a good investment?

The results reveal that GES has resulted in good performance metrics including IRR and NPV of project and Equity, as well as ADSCR, and LLCR. In addition, for a 1 GW power capacity and 125 MWh energy capacity system, gravity energy storage has an attractive LCOS of 202 $/MWh.

Do different sized gravity energy storage systems improve economic performance?

To investigate the economic performance of differently sized gravity energy storage systems, a wind farm with a number of gravity energy storage units has been used. The principle of economies of scale has been applied resulting in a cost reduction for large scale systems.

How much does gravity energy storage cost?

Depending on the considered scenarios and assumptions, the levelized cost of storage of GES varies between 7.5 €ct/kWh and 15 €ct/kWh, while it is between 3.8 €ct/kWh and 7.3 €ct/kWh for gravity energy storage with wire hoisting system (GESH). The LCOS of GES and GESH were then compared to other energy storage systems.