Energy Storage Value and Adoption Analysis
Storage Installed Cost ($/kW)
Study Conclusions
Optimal Storage Deployment Curves
Future procurements could be expressed as an "optimal deployment
curve" to account for cost uncertainty and changing system conditions.
$2,000
$1,800
$2,000
$1,800
$1,600
$1,400
Energy storage not cost-effective at
the upper-bound of the forecasted
2020 storage cost range ($1,800/kW)
Range of
$1,600
costs
considered
$1,400
$1,200
$1,000
$800
$1,200
2020
$1,000
$800
$600
$600
$400
$200
② At the lower bound of the 2020 storage
cost range ($1,200/kW), the optimal
storage deployment level is 175 MW
$400
① At the upper-bound of the 2030 storage
cost range ($1,310/kW), optimal
deployment is around 700 MW
②At the lower-bound of the 2030 storage
cost range ($880/kW), optimal storage
deployment reaches the total system-
wide need for new capacity (1,000 MW)
$200
$0
$0
0
200
400
600
800
1,000
0
200
400
600
Notes:
Estimated Optimal Storage Deployment (MW)
2030
Range of costs
considered
800
1,000
Estimated Optimal Storage Deployment (MW)
Costs are shown in nominal dollars. Values are based on an assumed energy storage configuration of 10 MW / 40 MWh.
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