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Title: Economic Analysis Case Studies of Battery Energy Storage with SAM

Abstract

Interest in energy storage has continued to increase as states like California have introduced mandates and subsidies to spur adoption. This energy storage includes customer sited behind-the-meter storage coupled with photovoltaics (PV). This paper presents case study results from California and Tennessee, which were performed to assess the economic benefit of customer-installed systems. Different dispatch strategies, including manual scheduling and automated peak-shaving were explored to determine ideal ways to use the storage system to increase the system value and mitigate demand charges. Incentives, complex electric tariffs, and site specific load and PV data were used to perform detailed analysis. The analysis was performed using the free, publically available System Advisor Model (SAM) tool. We find that installation of photovoltaics with a lithium-ion battery system priced at $300/kWh in Los Angeles under a high demand charge utility rate structure and dispatched using perfect day-ahead forecasting yields a positive net-present value, while all other scenarios cost the customer more than the savings accrued. Different dispatch strategies, including manual scheduling and automated peak-shaving were explored to determine ideal ways to use the storage system to increase the system value and mitigate demand charges. Incentives, complex electric tariffs, and site specific load and PVmore » data were used to perform detailed analysis. The analysis was performed using the free, publically available System Advisor Model (SAM) tool. We find that installation of photovoltaics with a lithium-ion battery system priced at $300/kWh in Los Angeles under a high demand charge utility rate structure and dispatched using perfect day-ahead forecasting yields a positive net-present value, while all other scenarios cost the customer more than the savings accrued.« less

Authors:
 [1];  [1];  [1]
  1. National Renewable Energy Lab. (NREL), Golden, CO (United States)
Publication Date:
Research Org.:
National Renewable Energy Lab. (NREL), Golden, CO (United States)
Sponsoring Org.:
USDOE Office of Energy Efficiency and Renewable Energy (EERE), Solar Energy Technologies Office (EE-4S)
OSTI Identifier:
1226239
Report Number(s):
NREL/TP-6A20-64987
DOE Contract Number:
AC36-08GO28308
Resource Type:
Technical Report
Country of Publication:
United States
Language:
English
Subject:
14 SOLAR ENERGY; 29 ENERGY PLANNING, POLICY, AND ECONOMY; SAM; battery; economic analysis

Citation Formats

DiOrio, Nicholas, Dobos, Aron, and Janzou, Steven. Economic Analysis Case Studies of Battery Energy Storage with SAM. United States: N. p., 2015. Web. doi:10.2172/1226239.
DiOrio, Nicholas, Dobos, Aron, & Janzou, Steven. Economic Analysis Case Studies of Battery Energy Storage with SAM. United States. doi:10.2172/1226239.
DiOrio, Nicholas, Dobos, Aron, and Janzou, Steven. Sun . "Economic Analysis Case Studies of Battery Energy Storage with SAM". United States. doi:10.2172/1226239. https://www.osti.gov/servlets/purl/1226239.
@article{osti_1226239,
title = {Economic Analysis Case Studies of Battery Energy Storage with SAM},
author = {DiOrio, Nicholas and Dobos, Aron and Janzou, Steven},
abstractNote = {Interest in energy storage has continued to increase as states like California have introduced mandates and subsidies to spur adoption. This energy storage includes customer sited behind-the-meter storage coupled with photovoltaics (PV). This paper presents case study results from California and Tennessee, which were performed to assess the economic benefit of customer-installed systems. Different dispatch strategies, including manual scheduling and automated peak-shaving were explored to determine ideal ways to use the storage system to increase the system value and mitigate demand charges. Incentives, complex electric tariffs, and site specific load and PV data were used to perform detailed analysis. The analysis was performed using the free, publically available System Advisor Model (SAM) tool. We find that installation of photovoltaics with a lithium-ion battery system priced at $300/kWh in Los Angeles under a high demand charge utility rate structure and dispatched using perfect day-ahead forecasting yields a positive net-present value, while all other scenarios cost the customer more than the savings accrued. Different dispatch strategies, including manual scheduling and automated peak-shaving were explored to determine ideal ways to use the storage system to increase the system value and mitigate demand charges. Incentives, complex electric tariffs, and site specific load and PV data were used to perform detailed analysis. The analysis was performed using the free, publically available System Advisor Model (SAM) tool. We find that installation of photovoltaics with a lithium-ion battery system priced at $300/kWh in Los Angeles under a high demand charge utility rate structure and dispatched using perfect day-ahead forecasting yields a positive net-present value, while all other scenarios cost the customer more than the savings accrued.},
doi = {10.2172/1226239},
journal = {},
number = ,
volume = ,
place = {United States},
year = {Sun Nov 01 00:00:00 EDT 2015},
month = {Sun Nov 01 00:00:00 EDT 2015}
}

Technical Report:

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  • In the first phase of this project, the technical and economic feasibility of using current technology battery storage systems was indicated for certain generic applications within a range of favorable system characteristics. This report presents the results of the second phase in which specific customer applications were identified and analyzed for economic viability. A large number of actual utility customer load profiles were screened in a search for viable applications. Sixteen profiles (representing 15 customers) were selected for a detailed economic analysis. A financial simulation model was developed in order to carry out a credible financial investment analysis and presentmore » analysis results in a form suitable for use by corporate and institutional financial planners. The model was used to perform detailed economic analyses of 16 customer applications. The economic analysis took into account actual cost data and utility rate structures, realistic operating scenarios, and different battery system sizes.« less
  • Detailed comprehensive lead-acid and lithium-ion battery models have been integrated with photovoltaic models in an effort to allow System Advisor Model (SAM) to offer the ability to predict the performance and economic benefit of behind the meter storage. In a system with storage, excess PV energy can be saved until later in the day when PV production has fallen, or until times of peak demand when it is more valuable. Complex dispatch strategies can be developed to leverage storage to reduce energy consumption or power demand based on the utility rate structure. This document describes the details of the batterymore » performance and economic models in SAM.« less
  • The Battery Energy Storage Test (BEST) Facility is for the testing and assessment of battery energy storage systems in a utility environment. This report discusses the hybrid-computer study of the BEST facility at the Transient Network Analyzer. The study covered harmonic analysis, rectifier operation, and inverter operation. (DLC)
  • This report presents a comparison of life cycle costs between battery energy storage systems and alternative mature technologies that could serve the same utility-scale applications. Two of the battery energy storage systems presented in this report are located on the supply side, providing spinning reserve and system stability benefits. These systems are compared with the alternative technologies of oil-fired combustion turbines and diesel generators. The other two battery energy storage systems are located on the demand side for use in power quality applications. These are compared with available uninterruptible power supply technologies.
  • In the first phase of this project, the technical and economic feasibility of using current technology battery storage systems was indicated for certain generic applications within a range of favorable system characteristics. This report presents the results of the second phase in which specific customer applications were identified and analyzed for economic viability. A large number of actual utility customer load profiles were screened in a search for viable applications. Sixteen profiles (representing 15 customers) were selected for a detailed economic analysis. A financial simulation model was developed in order to carry out a credible financial investment analysis and presentmore » analysis results in a form suitable for use by corporate and institutional financial planners. The model was used to perform detailed economic analyses of 16 customer applications. The economic analysis took into account actual cost data and utility rate structures, realistic operating scenarios, and different battery system sizes.« less