What makes energy storage economically viable? And how can its benefits be translated into successful business cases?

We are pleased to announce the publication of the Final Report of Task 41 – Economics of Energy Storage (EcoEneSto).

The report summarises the results of a three-year international collaboration, examining the economics of electrical, thermal, and chemical energy storage across different applications and energy sectors.

Key Findings

A central conclusion is that there is no universally cheapest or best energy storage technology. Economic viability depends on the specific application, operating conditions, cycling frequency, and available revenue streams.

The report also highlights that the economic value of storage comes primarily from the services it provides, rather than the stored energy itself. Multiple revenue streams and appropriate regulatory frameworks are often essential for viable business cases.

Practical Tools for Economic Evaluation

Task 41 developed three complementary approaches:

• Benefit–Revenue–Cost Approach: Identifies how storage benefits can be translated into revenues.
• Maximum Acceptable Energy Storage Cost Approach: Determines economically viable storage cost thresholds, supported by an Excel-based calculation tool.
• 12-Step Approach: Provides a structured framework for evaluating storage economics and developing business models.

The Final Report provides valuable guidance for researchers, industry stakeholders, investors, and policymakers seeking to advance the economic deployment of energy storage.