Renewables with storage systems could be cheaper than thermal power with CCS
CCS could drive LCOE for thermal power by up to double its alternatives.
Renewable energy with a storage system could be a more affordable alternative to thermal power generation with carbon capture storage, a report found.
The levelised costs of electricity (LCOEs) of solar and wind have increased recently, but this is expected to return to a downward trajectory, the Institute for Energy Economics and Financial Analysis (IEEFA) said.
Moreover, battery storage system prices and the resultant LCOE are also likely to improve as the technology is deployed in a larger scale.
Read more: Carbon capture and storage for fossil-fired plants risks worsening energy inflation
IEEFA noted that LCOE for thermal power generation with CCS is at least 1.5-2 times above the current alternatives.
“It is therefore difficult to contemplate electricity users willing to support the use of CCS on power generation when affordable decarbonized options exist,” the report read in part.