Energy Storage Value and Adoption Analysis

Evaluation of Key Value Drivers Customer Outage Reduction Value Approach We evaluate the reliability value to customers of deploying storage on specific feeders that historical experience relatively high levels of outages. - NV Energy provided data on 43,000 distribution-level outages for 2014-2018 We evaluate customer outage reduction benefits of siting storage at least-reliable feeders • We simulate storage deployed at each identified feeder, sized at average feeder peak load Account for both the duration (hours) and magnitude (MWh) of each outage • Account for unpredictability of outages • Assume customers value improved reliability at $12,500/MWh value of lost load (VOLL) Analysis assumes feeders can be “islanded" in event of an outage Requires grid modernization investments, e.g. microgrids, automated distribution switching We separately report cost-effective storage levels if grid modernization efforts not made and customer outage value cannot be captured brattle.com 19

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