POLICY BRIEF: 2/2023 - A review of vanadium redox flow battery

From the VRFB system costs diagram shown in THE LEVELISED COST OF Figure 3, the component costs of the battery account STORAGE FOR BATTERY for the highest proportion, at approximately 67% of STORAGE TECHNOLOGIES the cost of the battery. [...] Part of these component costs includes the vanadium electrolyte representing To appropriately compare and evaluate the costs and 30% to 65% of the total cost. [...] and Invinity Energy Systems (2023), the components of LCOS encompass both technical and economic The CAPEX for the VRFB is estimated at US$83/MWh parameters that impact the long-term expenses in the model, while the LFP system had a much lower of storage technologies. [...] By analysing the costs of different BESS, investors, The cost estimation of battery storage relies signifi- policymakers and other stakeholders can help guide cantly on the battery’s operational characteristics and the development of energy storage policies, such as the technology employed. [...] Understanding the cost drivers and evaluating CONCLUSION the technology options makes it possible to make The high cost of vanadium remains a significant informed decisions, leading to better performance challenge to the adoption of VRFB technology.