Energy Storage Value and Adoption Analysis
Evaluation of Key Value Drivers
Transmission & Distribution Investment Deferral
Approach
We used NV Energy capital expenditure data to identify high-value T&D
deferral opportunities and evaluate how storage could defer investments.
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NV Energy provided cost data and descriptions for 260 capital projects from 2014-2027
We estimate the subset that could be deferred by storage
• We identified 35 projects (14% of total) are potentially deferrable by storage
• Primarily transformer upgrades needed to support local load growth
We estimate the value of deferring each investment by 15 years
We make several assumptions to approximate how much storage may be require to
defer an investment
Initial Peak Load: based on NV Energy's project descriptions
Rate of Load Growth: Assumed 2%
Hourly Load Shape: Based on average residential or C&I load shapes
- We size the storage to 15 year load growth
*
Average of NPC and SPPC After Tax Weighted Average Cost of Capital (ATWAAC) per NV Energy 2018 IRP, weighted by each system's
contribution to total peak load.
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