Beside the storage technology itself, the specification, the design and the operational strategy are assessed in detail since they are the main drivers of profitability.
While financial benefits are highly correlated with external factors, such as feed-in tariffs or costs of renewable energy, lifecycle costs primary depend on the energy storage technology.
Both, technology and dimensioning, determine the initial costs of the system. Operation costs are mainly determined by energy losses during operation and the degradation of the system.
Lifecycle costs can be seen as technology characteristics from an economic point of view. Thus, on the one hand, lifecycle costs can be used as development incentives in order to develop cost efficient energy storage systems by revealing different trade-off possibilities. On the other hand, they facilitate the comparison of different energy storage technologies for specific applications.