Energy Storage Value and Adoption Analysis
Note:
Approach
Levelization of Storage Costs
We assume levelized installed costs of $136-204/kW-yr in 2020 and
$99-149/kW-yr in 2030 for 4-hour storage device.
Financial Assumptions
Financial Assumption
Fixed O&M
Developer After-Tax WACC
Battery Asset Life
Balance of Plant Asset Life
Total Income Tax Rate
Depreciation Schedule
Annual Inflation Rate
Value
% of Installed
1%
%
7%
yrs
15
yrs
15
%
21%
15-yr MACRS
%
2%
Levelized and Installed Cost Assumptions
For 10 MW (40 MWh) Storage Device
Implied Levelized
Assumed Installed Costs
$/kW Installed $/kWh Installed
Costs
$/kW-year
Assumed Costs
2020 Low
$1,200
$300
$136
2020 High
$1,800
$450
$204
2030 Low
$876
$219
$99
2030 High
$1,314
$328
$149
Cost and financing assumptions indicative of new development costs in Nevada. All values in nominal dollars
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