Content displaying: O&M

Battery Storage

Operation and Maintenance (O&M) Costs

Base Year: Cole and Frazier (2020) assumed no variable operation and maintenance (VOM) cost. All operating costs are instead represented using fixed operation and maintenance (FOM) costs. The FOM costs include augmentation costs needed to keep the battery system operating at rated capacity for its lifetime. In the 2020 ATB, FOM is defined as the value needed to compensate for degradation to enable the battery system to have a constant capacity throughout its life. The literature review (Cole & Frazier, 2020)states that FOM costs are estimated at 2.5% of the capital costs in dollars per kilowatt.

Future Years: In the 2020 ATB, the FOM cost remains constant at 2.5% of capital costs in all scenarios.


The following references are specific to this page; for all references in this ATB, see References.

Cole, Wesley, & Frazier, Will A. (2020). Cost Projections for Utility-Scale Battery Storage: 2020 Update. (No. NREL/TP-6A20-75385). National Renewable Energy Laboratory.

Developed with funding from the U.S. Department of Energy’s Office of Energy Efficiency and Renewable Energy.