The 2022 report moves from reporting a levelized cost of energy to an LCOS to better capture the attributes of storage and align with DOE cost targets for the Long-Duration Energy Storage Earthshot. LCOS represents a cost per unit of energy ($/kWh or $/MWh) metric that can be used to compare different storage technologies on a more equal footing than comparing their installed costs. Different systems have different calendar life, cycle life, DOD limitations, and O&M costs, and may require various capital expenditures over time in the form of major overhauls, augmentations, and replacements. Each of these characteristics and parameters, in addition to taxes, costs due to debt, and others, ultimately defines the total cost of a storage system over the lifetime of a project.
For more information on the various parameters and methodology used to develop the LCOS estimates, please refer to the LCOS section of the 2022 Cost and Performance Report. General equations and methodology shown in the appendix of the report can also be downloaded here.