Energy Storage Value and Adoption Analysis
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Evaluation of Key Value Drivers
Reduction in Production Costs
Findings
We find APC savings of $4.5 to $16.5 million in 2020 (200 MW vs.
1,000 MW storage deployed), and $9.3 to $40.6 million in 2030.
Savings due three factors:
Reduced costs of operating NV generators
Reduced imports during high priced hours
Increased revenues from sales
Savings account for the value of storage
providing ancillary services
Incremental savings (savings due to adding
1 additional MW of storage) fall as more
storage is added and highest-value
opportunities saturate
2020 Adjusted Production Cost Savings
(in nominal $million/year)
Savings (Storage Case
minus Base Case)
1,000 MW
Production Cost
Base
200 MW 1,000 MW
200 MW
Production Cost
$421
$420
$423
($1.1)
$2.2
Cost of Market Purchases
Revenues from Sales
$132
$129
$124
($3.1) ($7.9)
($46)
($46) ($57)
($0.4) ($10.8)
$507
$502
$490
($4.5) ($16.5)
Total
Estimated Incremental Benefit from APC Savings
Incremental Benefit ($/kW-yr)
Simulated
$60
$50
Extrapolated from Simulation Results
$40
2030 Incremental Benefit
$30
2020 Incremental Benefit
$20
$10
$0
200
400
600
800
1,000
Sources and Notes:
Storage Deployed (MW)
All values in nominal dollars. The total APC savings from simulations with 200 MW and 1,000 MW were used to estimate a relationship between
storage deployed and total savings, from which we can estimate the relationship between storage deployed and incremental APC savings.
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