Energy Storage 101/Economics - Revision history

Jthompson at 17:39, 21 December 2021

2021-12-21T17:39:44Z

Jthompson at 17:37, 21 December 2021

2021-12-21T17:37:21Z

Mevans at 22:49, 9 December 2021

2021-12-09T22:49:38Z

← Older revision		Revision as of 18:49, 9 December 2021
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	=Modeling Energy Storage=		=Modeling Energy Storage=
	~~'''Challenges~~ to ~~modeling~~ energy storage ~~include:'''~~		Advanced energy storage is a difficult technology to model owing to its limited energy capacity. Operating an energy storage system now can limit its ability to operate in the future. Additionally, energy storage is not yet a common grid asset and is subject to rapidly changing rules, regulations, and standards. But, the flexibility of energy storage can provide a lot of value when operated well and with consideration for the degradation of the system owing to their ability to go from charging to discharging and vice versa quickly and without interruption. Typically, energy storage systems do not serve just one application and instead leverage their flexibility across several stacked services. Service stacking presents additional modeling challenges, though, because the requirements imposed by each service need to be meet in parallel. The need to ensure a storage system can provide stacked services without running out of stored energy typically necessitates detailed, site-specific time series modeling.
	*Storage is not yet a common grid asset
	*Rules and regulations ~~are still evolving~~
	*Benefit stacking is appealing, ~~but is it possible?~~
	**More services = more value
	**More services ~~= more requirements~~
	**Can these requirements be ~~satisfied?~~
	*Storage value analyses are site-specific
	*Complex co-optimization between storage technologies, objectives, and constraints

	=Other Resources=		=Other Resources=

Jthompson: /* Cost Components and Trends */

2021-12-09T21:56:17Z

Cost Components and Trends

← Older revision		Revision as of 17:56, 9 December 2021
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	The image below shows lithium ion cost projections from a [https://www.epri.com/research/products/000000003002020048 2020 EPRI cost study]. As demonstrated in the two examples above, the longer duration systems, as of 2020, are more expensive per kW than the shorter duration systems. However, EPRI's cost study projects that the cost per kW of 8 hour duration lithium ion systems is decreasing at a faster rate than 2 hour lithium ion systems.		The image below shows lithium ion cost projections from a [https://www.epri.com/research/products/000000003002020048 2020 EPRI cost study]. As demonstrated in the two examples above, the longer duration systems, as of 2020, are more expensive per kW than the shorter duration systems. However, EPRI's cost study projects that the cost per kW of 8 hour duration lithium ion systems is decreasing at a faster rate than 2 hour lithium ion systems.

	[[File:Li_Ion_Cost_Projection_2020.png\|none\|thumb\|800px\|~~Source: EPRI. "~~Lithium Ion Installed Cost Projections": [https://www.epri.com/research/products/000000003002020048 Battery Energy Storage Lifecycle Cost Assessment Summary 2020]]]		[[File:Li_Ion_Cost_Projection_2020.png\|none\|thumb\|800px\|Lithium Ion Installed Cost Projections<ref>EPRI: "[https://www.epri.com/research/products/000000003002020048 Battery Energy Storage Lifecycle Cost Assessment Summary 2020]"</ref>]]

	=Modeling Energy Storage=		=Modeling Energy Storage=

Jthompson at 21:54, 9 December 2021

2021-12-09T21:54:40Z

← Older revision		Revision as of 17:54, 9 December 2021
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	~~{{Page in progress}}~~

	{{DISPLAYTITLE: Energy Storage {{SUBPAGENAME}}}}		{{DISPLAYTITLE: Energy Storage {{SUBPAGENAME}}}}

Jthompson: /* Other Resources */

2021-12-09T21:51:30Z

Other Resources

← Older revision		Revision as of 17:51, 9 December 2021
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	=Other Resources=		=Other Resources=
	==~~'''~~EPRI Tools to Support Valuation Modeling~~'''~~==		==EPRI Tools to Support Valuation Modeling==
	* [http://storagevet.com/ StorageVET]		* [http://storagevet.com/ StorageVET]
	* [http://der-vet.com/ DER-VET]		* [http://der-vet.com/ DER-VET]
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	! Access Level		! Access Level
	\|-		\|-
	\|[https://www.epri.com/research/products/~~000000003002013958~~ EPRI Solar Plus Storage Cost Assessment and Design Considerations: Executive Summary (2019)]		\|[https://www.epri.com/research/products/000000003002016637 EPRI Solar Plus Storage Cost Assessment and Design Considerations: Executive Summary (2019)]
	\|Publicly Available		\|Publicly Available
	\|-		\|-
	\|[https://www.epri.com/research/products/~~000000003002013529~~ EPRI Energy Storage Technology and Cost Assessment: Executive Summary (2018)]		\|[https://www.epri.com/research/products/000000003002013958 EPRI Energy Storage Technology and Cost Assessment: Executive Summary (2018)]
	\|Publicly Available		\|Publicly Available
	\|-		\|-
	\|[https://www.epri.com/research/products/~~000000003002008901~~ ESIC Energy Storage Cost Tool and Template]		\|[https://www.epri.com/research/products/000000003002013529 ESIC Energy Storage Cost Tool and Template]
	\|Publicly Available		\|Publicly Available
	\|-		\|-
	\|[https://www.epri.com/research/products/~~000000003002016637~~ Energy Storage Valuation in California: Policy Planning and Market Information Relevant to the StorageVET Model]		\|[https://www.epri.com/research/products/000000003002008901 Energy Storage Valuation in California: Policy Planning and Market Information Relevant to the StorageVET Model]
	\|Publicly Available		\|Publicly Available
	\|}		\|}

Jthompson: /* Other Resources */

2021-12-09T21:41:59Z

Other Resources

← Older revision		Revision as of 17:41, 9 December 2021
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	* [http://der-vet.com/ DER-VET]		* [http://der-vet.com/ DER-VET]

	===Reports===		==Reports==
	{\| class="wikitable"		{\| class="wikitable"
	! style="text-align:left;"\| Resource		! style="text-align:left;"\| Resource
	! Access Level		! Access Level
	\|-		\|-
	\|[https://~~membercenter~~.epri.com/~~Programs~~/~~053125~~/~~pages/productabstract.aspx?ProductId=000000003002016637~~ EPRI Solar Plus Storage Cost Assessment and Design Considerations: Executive Summary (2019)]		\|[https://www.epri.com/research/products/000000003002013958 EPRI Solar Plus Storage Cost Assessment and Design Considerations: Executive Summary (2019)]
	\|Publicly Available		\|Publicly Available
	\|-		\|-
	\|[https://~~membercenter~~.epri.com/~~Programs~~/~~053125~~/~~pages/productabstract.aspx?ProductId=000000003002013958~~ EPRI Energy Storage Technology and Cost Assessment: Executive Summary (2018)]		\|[https://www.epri.com/research/products/000000003002013529 EPRI Energy Storage Technology and Cost Assessment: Executive Summary (2018)]
	\|Publicly Available		\|Publicly Available
	\|-		\|-
	\|[https://~~membercenter~~.epri.com/~~Programs~~/~~053125~~/~~pages/productabstract.aspx?ProductId=000000003002013529~~ ESIC Energy Storage Cost Tool and Template]		\|[https://www.epri.com/research/products/000000003002008901 ESIC Energy Storage Cost Tool and Template]
	\|Publicly Available		\|Publicly Available
	\|-		\|-
	\|[https://~~membercenter~~.epri.com/~~Programs~~/~~053125~~/~~pages/productabstract.aspx?ProductId=000000003002008901~~ Energy Storage Valuation in California: Policy Planning and Market Information Relevant to the StorageVET Model]		\|[https://www.epri.com/research/products/000000003002016637 Energy Storage Valuation in California: Policy Planning and Market Information Relevant to the StorageVET Model]
	\|Publicly Available		\|Publicly Available
	\|}		\|}

Jthompson: /* Other Resources */

2021-12-09T21:38:16Z

Other Resources

← Older revision		Revision as of 17:38, 9 December 2021
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	=Other Resources=		=Other Resources=
	~~<br>~~'''EPRI Tools to Support Valuation Modeling'''		=='''EPRI Tools to Support Valuation Modeling'''==
	~~<br>~~[http://storagevet.com/ StorageVET]		* [http://storagevet.com/ StorageVET]
	~~<br>~~[http://der-vet.com/ DER-VET]		* [http://der-vet.com/ DER-VET]
	~~<br>'''~~Reports~~'''~~
			===Reports===
	{\| class="wikitable"		{\| class="wikitable"
	! style="text-align:left;"\| Resource		! style="text-align:left;"\| Resource

Jthompson at 21:30, 9 December 2021

2021-12-09T21:30:57Z

← Older revision		Revision as of 17:30, 9 December 2021
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	'''Reliability vs. Economic Services'''		'''Reliability vs. Economic Services'''
	* Reliability ~~takes~~ priority~~: e.g~~. transmission / distribution deferral services are higher priority than market services.		Reliability services take priority over economic services. For example transmission / distribution deferral services are higher priority than market services.
	* Long-term planning constraints take priority to economic optimization and constraints roll-up; Multi-year >> Annual >> Monthly >> Day-ahead >> Real-time
	*Local vs. System Level
	**Local objectives generally supersede system objectives when there is a conflict (e.g. T&D deferral higher priority than resource adequacy) although should be designed so that reliability services never conflict

			'''Local vs. System Level'''
			In general, local objectives supersede system objectives when there is a conflict. For example, transmission / distribution deferral is a higher priority than resource adequacy, though operations should be designed such that reliability services never conflict.

	=Cost Components and Trends=		=Cost Components and Trends=

Jthompson at 21:26, 9 December 2021

2021-12-09T21:26:17Z

@@ Line 69: / Line 69: @@
 [[File:Transmission Value Stacking.png|none|thumb|800px|One grid service alone may not provide enough value to justify the lifetime costs of an energy storage system. In the right environment, multiple grid services can be stacked to increase the lifetime value.]]
 =Cost Components and Trends=
@@ Line 99: / Line 109: @@
 *Storage value analyses are site-specific
 *Complex co-optimization between storage technologies, objectives, and constraints
 =Other Resources=