Feasibility assessment of customer-side-of-the-meter applications for battery energy storage
Reduction of peak demand on utility systems can be beneficial to both utilities and customers. One means of achieving peak demand reduction is the use of load-leveling batteries. This report describes an investigation of the important techno-economic factors for customer-owned battery energy storage plants. Only current state-of-the-art lead-acid batteries were considered. The study has taken into account realistic battery and balance-of-plant (BOP) costs, current utility rates, and customer load profiles typical of those for which battery storage may be feasible. Battery storage system designs and costs were described and quantified through contacts with vendors and use of previous study results. Utilities with electric rate structures expected to favor customer load-leveling were selected and contacted to obtain the most current rates and customer load profiles. Using these data for a range of generic applications, an economic analysis was conducted. A baseline application was described and evaluated using internal rate of return (ROR) and payback methods. Certain cost and performance parameters were varied parametrically in order to determine the sensitivity of the analysis results to these parameters. An analysis of five specific customer applications was also made. The results of this study indicate that battery, power conditioning system and ancillary equipment technologies make construction of customer-side-of-the-meter battery energy storage facilities technically feasible at present. Economic feasibility was found for several applications. The major equipment cost drivers were found to be battery and converter costs. Battery system size (kWh) and BOP costs have a secondary effect on economic viability. Other cost and battery system efficiency, were found to have little influence on the ROR. Key non-equipment factors found to be important included utility demand charge ($/kW-month) and customer load profile shape.
- Research Organization:
- Bechtel Group, Inc., San Francisco, CA (USA)
- OSTI ID:
- 6868296
- Report Number(s):
- EPRI-EM-2769; ON: DE83900988
- Country of Publication:
- United States
- Language:
- English
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Related Subjects
POLICY AND ECONOMY
25 ENERGY STORAGE
ELECTRIC POWER
RATE STRUCTURE
ELECTRIC UTILITIES
LOAD MANAGEMENT
ENERGY STORAGE SYSTEMS
FEASIBILITY STUDIES
INDUSTRIAL PLANTS
LEAD-ACID BATTERIES
ECONOMIC ANALYSIS
PERFORMANCE
CAPITALIZED COST
MAINTENANCE
OPERATING COST
POWER DEMAND
PRICES
COST
ECONOMICS
ELECTRIC BATTERIES
ELECTROCHEMICAL CELLS
ENERGY SYSTEMS
MANAGEMENT
POWER
PUBLIC UTILITIES
296000* - Energy Planning & Policy- Electric Power
250902 - Energy Storage- Batteries- Performance & Testing